The Crypto.com exchange really wants to enter the US market in full force. After announcing the investment in sports, the company has now purchased two other platforms: NADEX and Small Exchange.
According to Crypto.com, the two platforms operate in the derivatives and futures market, respectively. Both are regulated by the Futures and Commodities Trading Commission (CFTC).
NADEX, or North American Derivatives Exchange, is a regulated exchange focused on the retail investor. Small Exchange, on the other hand, is a futures exchange that offers simpler products. She is also focused on the retail investor.
Acquisitions with an eye on cryptocurrency futures
With the acquisition of NADEX and Small Exchange, CryptoCom will be able to offer the American consumer the possibility to trade derivatives and future products. Thus, the exchange must compete with giants like CME and FTX, which already have similar products.
In this sense, Crypto.com promises to offer differentials such as regulation, reliability and security on the platforms. Currently, CME is the only regulated exchange that allows the trading of cryptocurrency futures.
As explained by Kris Marszalek, co-founder and CEO of Crypto.com, the ultimate goal is to help exchange users achieve financial independence. The platform already has around 10 million active users worldwide.
There is also another important factor: institutional investors, who can become a target audience for the exchange. For this, Crypto.com would need to register and obtain authorization from the CFTC to sell its futures products to this audience.
Marszalek hasn’t confirmed whether Crypto.com has plans in that direction, but the exchange is in fact eyeing institutional ones. Silvergate Bank and the exchange have partnered to facilitate dollar deposits and withdrawals for the bank’s institutional investors. Transactions are free of charge and can be carried out 24 hours a day.
In addition, Crypto.com also wants to enter the decentralized applications (dApps) market with the launch of Cronos Mainnet Beta. The main intention behind the project was to deliver dApps to exchange users.