CrossTower acquires institutional prime brokerage BEQUANT

Cryptocurrency exchange CrossTower Inc has agreed to buy digital asset trading platform BEQUANT, which comes after months of window-shopping by CrossTower for crypto companies, including a recently revised offer for the assets of Voyager Digital.

The November 28 acquisition will provide CrossTower with more than 600 new professional exchange customers in addition to its existing customer base. Inbound customers are based in the United States, Europe, Asia and Latin America and collectively earn over $400 billion annually.

The purchase comes as CrossTower CEO Kapil Rathi said on Nov. 24 that CrossTower has long been looking to buy digital asset companies with a “good set of customers” and a “good track record,” which included a second look at the now-bankrupt cryptocurrency lending platform Voyager, which is back on the market after its initial deal with FTX fell through.

Rathi said access to more than 600 stock market clients through the acquisition of BEQUANT would also put the company in a better position to help restore industry confidence, which has been significantly weakened by recent events with FTX.

The CrossTower deal was backed by London-based financial services firm Lydian Group, with CEO Gerard Lopez saying he hoped the acquisition of CrossTower would pave the way in bringing more professionalism and transparency to the industry.

CrossTower set to introduce ‘industry-first’ crypto ESG fund

The trading platform has also announced that it will soon offer a crypto fund with an environmental, social and governance (ESG) focus that will invest in “promising” companies that demonstrate a sufficient level of social responsibility and governance in addition. effectively manage energy costs.

Although CrossTower didn’t disclose any potential companies that could be part of its new fund, the trading platform said it will look for companies that aren’t fueled by “greed” and instead prioritize “democratization.” finance”.

CrossTower added that it would look for digital asset companies with an “appropriate board structure […] checks and balances and traditional business expertise,” adding that “struggling” crypto companies today are due to “human failure.”

Related: Saving the Planet Could Be Blockchain’s Killer App

The announcement of CrossTower’s first ESG Crypto Fund comes as a number of industry leaders recently told Cointelegraph that The Ethereum Merge, which took place on September 15, will become a “significant factor” in taking institutional investment decision-making, especially for companies. such as Fidelity Investments, BlackRock and Goldman Sachs which have ESG mandates.

Interestingly, a June study by investment management firm Morningstar found that 80% of investors who own ESG-themed investments also own cryptocurrencies, as reported by CNBC.

In contrast, the study also found that only 22% of non-ESG investors own cryptocurrencies.