Bitcoin, Ethereum, Litecoin… today’s sophisticated investors are increasingly asking about these digital asset alternatives to traditional wealth holdings. So it’s not surprising to see an investment pairing of minds and equity in the form of Mogo’s strategic investment in Coinsquare.
Through the deal, Mogo acquires nearly 20% of Toronto-based Coinsquare, digital asset trading platform. The deal includes an option to expand to 40%. This deal expands an existing relationship – Coinsquare is the trading platform today for MogoCrypto, which allows Mogo members to buy and sell bitcoin. The current investment by Mogo brings their digital wallet capabilities closer to the digital trading platform operated by Coinsquare.
While bigger industry players may be inclined to write off digital asset alternatives as a niche market (Coinsquare saw trading volume of $525 million in Jan, 2021), it’s undoubtedly a growing need. Speaking of the investment in Coinsquare, Greg Feller, President of Mogo, said: “This major strategic transaction with Coinsquare gives us a significant stake in a highly valuable platform in one of the most exciting and fastest growing sectors of fintech. We believe there are significant opportunities to drive value for both Mogo and Coinsquare by bringing together Mogo’s leading digital wallet capabilities and Coinsquare’s leading digital trading platform.”
Mogo is undoubtedly an exciting Canadian FinTech to watch. With over one million members it’s user base growth is impressive. Through the Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, easily buy and sell bitcoin, and get free monthly credit score monitoring, ID fraud protection, and personal loans.
How will Canada’s big banks and brokerages address the new variety of digital assets some investors are looking for? Will they too pair up with FinTech players through strategic investments? Will they build-in house or license from a third party? From an experience perspective, what would happen today if I walked into a branch and asked to invest in Ethereum?