Bitstamp, one of the world’s longest-running cryptocurrency exchanges, is moving forward with its global expansion ambitions, working to raise new funds to scale operations.
Crypto exchange Bitstamp started the fundraising process in late June, with Michael Novogratz’s Galaxy Digital Holdings acting as an adviser, Bloomberg reported on Aug. 7.
The firm plans to use the raised capital to launch derivatives trading in Europe in 2024 and expand several of its served markets in Asia. Bitstamp is also looking to scale its services in the United Kingdom, the report notes.
Bitstamp’s global CEO Jean-Baptiste Graftieaux reportedly said that the company is now exclusively focused on raising money to expand the services to retail and institutional crypto clients. He added:
“Bitstamp is not for sale, and we are not actively looking to sell the company.”
A spokesperson for Bitstamp told Cointelegraph that the firm is examining the possibility of expanding into derivatives trading in Europe. Meanwhile Bitstamps sees Singapore, Hong Kong and Australia as its key markets in the Asia-Pacific region. Bitstamp currently operates in 194 countries, the representative noted, adding:
“While Europe is our primary base of business, we also have a strong presence in the Americas and a growing presence in Asia.”
The news comes a few months after major blockchain firm Ripple acquired a minority stake in Bitstamp in the first quarter of 2023. Novogratz’s Galaxy also acted as an adviser on the deal, which was publicly announced in late May.
Bitstamp’s latest efforts to scale its business come in line with its global expansion plans announced in 2018 when the firm was acquired by South Korean NXC-backed NXMH.
Back then, Bitstamp co-founder Nejc Kodrič claimed that he and another Bitstamp co-founder, Damijan Merlak, “were not looking to sell” and “were definitely not looking for investment’ because they “didn’t need to raise the capital.” However, Kodrič still took the opportunity to cash out on most of his Bitstamp stock while keeping 10% and remaining CEO.
Related: Gemini plans Asia-Pacific expansion as part of ‘next wave of growth for crypto’
Founded in 2011 in Slovenia, Luxembourg-based Bitstamp was once a major venue for Bitcoin (BTC) trading, serving as an option to then-dominant Bitcoin exchange Mt. Gox. Bitstamp is now one of the world’s largest crypto exchanges, with about $127 million in trading volume in a recent 24-hour period, according to data from CoinGecko.
The news came one day before Bitstamp announced some trading restrictions on its platform in the United States.On Aug. 29, Bitstamp will halt trading of tokens like Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), The Sandbox (SAND) and Solana (SOL). The firm cited “recent market developments,” adding that holding and withdrawing tokens will be unaffected.
Update for our US users
Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.
Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.
More info:…
— Bitstamp (@Bitstamp) August 8, 2023
In June, Bitstamp’s U.K. arm joined the list of registered firms under the country’s Financial Conduct Authority.
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Sourced from cointelegraph.com.
Written by Helen Partz on 2023-08-08 08:37:31.
