- This is the first acquisition deal for the Vienna-based exchange.
- The exchange sees the acquisition as a step towards its goal of launching a Prime Brokerage.
Austrian exchange Bitpanda has completed an acquisition agreement for institutional-grade DeFi asset custody provider Trustology. Neither side disclosed the details, but according to a source familiar with the developments, the deal is in the eight-figure range in US dollars.
This is the first acquisition the exchange has completed and represents a step forward towards introducing brokerage services under the Bitpanda Pro platform.
“The introduction of Bitpanda Custody is the first step in launching a Prime Brokerage offering under Bitpanda Pro to accompany the regulated digital asset exchange. Bitpanda Pro will commit to a disruptive fee model aimed at driving the cost of custody down to zero. for customers actively trading on our exchange and the OTC desk will be launched soon.”
Trustology is a UK-based cryptocurrency custodian that gained full registration and approval from the UK Financial Conduct Authority last October. The acquisition puts Bitpanda in a position to offer cryptocurrency custody services.
Trustology will change its name to Bitpanda Custody
As part of the deal, Trustology, which is focused on the DeFi space, will adopt a new name, ‘Bitpanda Custody’, under the Bitpanda brand. The new entity will help the exchange move forward with its plans to introduce digital asset custody for its institutional investors.
Bitpanda will leverage Trustology’s FCA registration to offer crypto custody services across the UK while maintaining its operations in Europe. Bitpanda Custody will take over the custody role of Bitpanda’s existing retail clients and institutional businesses as a first step, making it one of the world’s leading digital asset custody platforms.
Trustology founder Alex Batlin, in a statement published in PR on Tuesday, praised Bitpanda’s plans to promote institutional crypto custody.
Eric Demuth, CEO of Bitpanda, noted that Trustology had developed a “ exceptional custody technology”, and added that the resulting entity will help the exchange achieve its goal of “build a leading, fully regulated and secure digital investment platform” that suits all types of investors
It is worth noting that Bitpanda raised a significant amount of funds through a series of funding rounds last year. The exchange became the first FinTech in Austria to reach $1 billion in market capitalization after raising $170 million from its Series B funding round last March. It also closed a $263 million Series C in August, reaching a valuation of $4.1 billion. The fundraiser featured Peter Thiel’s venture capital firm, Valar Ventures.