Canadian Exchange Coinsquare Acquires StellarX, Citing Need for “A Home with Regulatory Experience”
StellarX is a trading platform that has reached many consumers and has seen substantial change and success over the years. However, their unfamiliarity with the regulations that they must abide by is overwhelming, and they have admitted that they are not adequately prepared for the legal demands.
As such, a new Medium blog from StellarX has announced that Coinsquare has acquired their platform, which The Block reported on.
Coinsquare has been wildly successful, earning them a top spot as the biggest crypto exchange in all of Canada. With the new acquisition, StellarX still will confidently continue on their roadmap that was published last year, as Coinsquare’s developers and designers help to “make StellarX into the product we know it can be.”
There will not be any changes to the brand externally that might impact customers, but the Medium blog offers some answers as to why this change is happening at all. The platform admits their substantial progress, saying that they managed to become a “top-3 decentralized marketplace” within a few weeks of their original launch. However, the blog states,
“To fulfill its potential, StellarX needs a home with regulatory experience and with a full-scope plan to build around the app.”
StellarX calls Coinsquare “a perfect fit,” considering their role as the leading crypto platform in Canada, along with their positive relationships with US, European, and Canadians regulators. Coinsquare even managed to acquire BlockEQ only a few months ago, bringing them co-founder Megha Bambra, who will not be in charge of leading StellarX. StellarX calls Bambra
“an extremely capable entrepreneur excited to grow StellarX and the Stellar ecosystem as a whole.”
Now, there is a transition period to adjust to the new hierarchy in the StellarX platform, though they take the time to announce an upcoming StellarX mobile app that is in the works. The new acquisition will provide opportunities that were not afforded to the platform before, including “new fiat tethers and securities tokens.”
The original team is part of this deal, and they will be part of the creation of new products and the improved developer experience. The blog concludes,
“We all see StellarX as a cornerstone utility for the network, and we’re excited to watch Stellar, Coinsquare, and StellarX grow together in 2019 and beyond.”