Largest Canadian crypto exchange Coinsquare has acquired StellarX, a Stellar-based zero-fee decentralized crypto exchange and payment network. According to the announcement, StellarX will be a fully owned subsidiary of Toronto-based Coinsquare and will seek regulatory approval to operate and expand its service under Coinsquare’s compliance.
The deal was announced on Thursday, Feb. 14, via StellarX post on Medium. The financial terms are not disclosed, however StellarX will continue to operate under its own brand.Highlighting the potential of StellarX, the team says that by dollar-equivalent volume the platform was a top-3 decentralized marketplace just weeks after launch, with tens of millions of dollars of value claimed to be held by StellarX account holders today. However, to fulfill its potential, StellarX is said to be in need of “a home with regulatory experience and with a full-scope plan to build around the app.”
“Coinsquare is the perfect fit. They are already the leading Canadian cryptocurrency platform. They have very close relationships with regulators in the U.S., Europe, and Canada. The Bank of Montreal is their banking partner. They have experience with Stellar, having acquired BlockEQ a few months before. And, in Megha Bambra, the BlockEQ co-founder who will now lead StellarX, they have an extremely capable entrepreneur excited to grow StellarX and the Stellar ecosystem as a whole,” reads the announcement.
In a separate press release, Coinsquare says that BlockEQ will be re-branded to become the anchor wallet for the StellarX platform.
“We are deeply committed to ensuring that the cryptocurrency market thrives, and adoption is key”, said Cole Diamond, CEO of Coinsquare. “Stellar is the fastest payment network in the world and we see enormous potential to create industry leading services on StellarX to further broader adoption”.
StellarX is based on Stellar’s (XLM) universal marketplace and positions itself as a “real fiat on-ramp,” allowing users to make deposits directly from a U.S. bank account. The exchange was launched in September 2018 by Interstellar, a company formed earlier the same month after San Francisco-based technology startup Chain Inc. was acquired by Lightyear Corp. Interstellar migrated Chain’s customer base and products onto Stellar’s public ledger; creating a platform with an aim of enabling organizations to issue, exchange, and manage digital assets.