More and more financial technology firms are beginning to recognize the unrealized market potential for digital asset trading platforms. Even in the partially-restricted Chinese market, some major organizations are diving deep into their pockets to scrounge together what holdings they can within the rapidly-expanding global market of decentralized cryptocurrency trading.
The latest of these telling acquisitions comes from the Beijing-based financial technology firm known as AGM Group Holdings. They announced on Friday that they had won a majority stake in SIFT Capital Partners. Amounting to 75% of the total equity shares in the business, the company seeks to capitalize on the quick growth that the cryptocurrency market has seen on the global stage in the past two years.
The asset management firm recently acquired by AGM is based in Hong Kong, and is predicted to aid AGM in the development of their own positions in the growing market. The acquisition is the latest move in what some speculators feel is a concerted effort by the company to enter the market with big plans and high financial hopes.
In any case, the firm’s involvement in these recent acquisitions is a big deal, because it helps to characterize a growing interest by financial powers in the traditional economic sector in becoming involved in the new cryptocurrency market which seems to represent the “new age” of financial asset exchange.
AGM Long-Term Crypto Plans
AGM is already a major power in the financial technology industry. Their primary interest seems to be in the sector of brokerage firms, investing and acquiring new companies to expand their financial reach in communities and markets all around the world. The deal to gain majority access to SIFT ended with a contribution of around $800,000 USD, or HK$6 million.
SIFT is classified as a Type 9 asset management firm, and the deal is now contingent on the fulfillment of two conditions. The first is the actualization of closing conditions specified on the deal, which are generally simple housekeeping items with little stress or consequence for either organization. The second part of the process involves gaining the necessary approval and reporting status from the Securities and Futures Commission in Hong Kong, which is the regulatory body responsible for financial asset exchange and securities sale business.
Leading analysts speculate that the move will lead to more cooperation between the two companies in the cryptocurrency market. It is likely that they will combine technological resources in order to give AGM the necessary tools to invest in digital, decentralized assets in the near future.
Secondary Acquisition Aids Crypto-Investing Efforts
AGM also announced their intentions to secure an equity acquisition arranfement with AGM Global Asset Management, Ltd., an investment company based in the Cayman Islands. The latter company has not actually conducted business, meaning that their financial contribution to the merger is negligible at best.
The chairman of the former company, Zhentao Jiang, outlined that the merger should be essential to “creating potential channels” for the company to “further growth” within the growing digital currency market. He also outlined that AGM has a definitive plan to invest in a variety of currencies in the coming years.