Swyftx CEO Jason Titman said the deal would help accelerate the growth of both businesses over the next few years.
Swyftx CEO Jason Titman said the deal would help accelerate the growth of both businesses over the next few years.
Kiwi cryptocurrency exchange Easy Crypto has been bought by Brisbane-based Swyftx, creating one of the biggest trading platforms in the transtasman market.
Founded by siblings Janine and Alan Grainger, Easy Crypto has over 350,000 users and has processed more than $3.5 billionworth of transactions on the platform since 2018.
Janine Grainger, Easy Crypto co-founder, said the sale of the company comes as digital currencies reach record heights.
Co-founder Janine Grainger said while the move came as digital currencies were reaching record heights, it was the right call for the business.
“It’s a huge next step for us, and we’re really proud of what we’ve built, and where we’ve taken the company over the last eight years.
“I think this is a really exciting opportunity for our global ambitions to be taken forward and for us to really deliver on that financial freedom and independence that we’re looking to offer for customers.”
Since launching, Easy Crypto has expanded internationally, with a presence in Australia and South Africa, and staff in southeast Asia, including in Malaysia and Indonesia.
The merging of Easy Crypto’s international customer base with Swyftx’s 800,000-plus customers creates Australasia’s second-largest platform by trading volume.
Swyftx employs about 150 staff and since its launch in 2018, it has supported more than $40 billion in trade volumes across Australia and New Zealand.
Grainger said Easy Crypto’s board made the decision to look for a buyer about a year ago.
“That decision was influenced by a whole range of factors. We’ve seen an increasing move towards consolidation in the crypto industry. So we went out to market looking for the best opportunity.
“That best buyer was Swyftx, and it’s quite exciting for us that not only was that deal ... financially the most sensible, but also it’s a really strong culture, values, and vision fit.”
Grainger would not speculate on the sale price, but said it was “a deal we are happy with”.
Swyftx chief executive Jason Titman said the deal was designed to create new opportunities for growth and innovation for both platforms.
Swyftx chief executive Jason Titman said the deal would help accelerate the growth of both businesses.
“Easy Crypto is a high-quality, trusted and innovative business in a market that will grow over the next few years. We have wanted to expand our presence in New Zealand for some time. Australasia needs a large, world-class, homegrown exchange to compete with international offerings and this deal creates exactly that.
“The long-term plan is for Easy Crypto to transition to the Swyftx platform, giving its customers access to a wider range of over 400 crypto assets and competitive fees.”
Titman said that Swyftx plans to continue a physical presence in New Zealand. .
Grainger said the impact of the new administration in the United States had caused a lot of volatility in the market, driving demand and growth in Easy Crypto’s trading base.
“We do see also that cryptocurrency is becoming a lot more mainstream. You’ve got governments talking about it now, you’ve got a lot of institutional involvement, you’ve got banks and corporates, governments all starting to look at holding cryptocurrency on balance sheets.”
“It feels like the industry is really maturing, and combined with that you’ve got a lot of changes in the regulatory environment as well.”
Australian regulatory change
Easy Crypto’s acquisition comes ahead of sweeping regulatory changes set to be introduced in Australia this year.
The changes are designed to ensure greater protections for consumers within the crypto trading environment.
Titman said Swyftx was already well advanced in its preparation for a regulated future.
“We’re strong supporters of robust rules and know that many potential investors are waiting for the introduction of regulations before they enter the market.
“Our analysis suggests anything up to 6.4 million more Australians could enter the market when regulated. At that point, you are talking about a local market worth well in excess of $143b a year.”
Back here in New Zealand, Grainger said she would love to see a “champion in Government” willing to look at the industry and give them a “real competitive advantage”.
“It’s a really positive industry for us to be moving into. To have a wrap-around view across Government of how can we help promote skills, tech, regulation, etc in the sector to help New Zealand become a heavyweight in the blockchain industry, that would be exciting.”
Grainger’s future
As for Grainger’s future, she said she and brother Alan would continue to be involved with the company’s transition to ensure the process is smooth for their team and Easy Crypto’s investors.
“I’ll be working very closely with the business for at least the next year. This acquisition will come into place at the end of this month and then we’ll be getting down to the transition planning.”
Grainger could not confirm whether she had an earn-out clause, or what is on the horizon post-transition.
“After the transition is done, who knows, it depends on what sort of opportunities and what the joint strategy for the company is.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
