Bitstamp, one of the oldest crypto exchanges, is in talks to raise fresh funding, according to Jean-Baptiste Graftieaux, global chief executive officer of the platform.
(Bloomberg) — Bitstamp, one of the oldest crypto exchanges, is in talks to raise fresh funding, according to Jean-Baptiste Graftieaux, global chief executive officer of the platform.
Bitstamp started the fundraising process in late June, with Galaxy Digital Holdings acting as an adviser, according to a spokesperson. The exchange plans to use the funds for operations, including launching derivatives trading in Europe next year and expanding the number of markets it serves in Asia, as well its operations in the U.K., the spokesperson said.
“Bitstamp is not for sale, and we are not actively looking to sell the company,” Graftieaux said in a statement. “Our current and exclusive priority is to raise money through strategic investors to accelerate Bitstamp’s growth by providing new products and services to retail and institutional crypto customers.”
Galaxy earlier served as an adviser to Pantera, which sold its minority stake in Bitstamp to Ripple this year.
Founded in 2011, Luxembourg-based Bitstamp was once a primary venue for Bitcoin trading, serving as an alternative to then-dominant Bitcoin exchange Mt. Gox. It’s now the world’s seventh-largest exchange, with about $126 million in trading volume in a recent 24-hour period, according to data from Coinmarketcap.com. In 2018, Bitstamp was acquired by NXMH, a European investment firm owned by South Korean conglomerate NXC.
Bitstamp USA, the American unit, has a coveted license known as BitLicense, allowing it to serve clients in New York state. It gained market share in the US this year, while other exchanges such as Binance US lost share, according to data from Kaiko.
More crypto platforms are venturing into the derivatives space, dominated by FTX before its collapse as well as Binance. Coinbase Global Inc. and Gemini both launched derivatives exchanges offshore this year.
Crypto firms that survived the industry’s steep downturn in 2022 are now engaged in a flurry of dealmaking they hope will strengthen their financial situations and better prepare them for the next boom.
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