As cryptocurrencies continue to move to the forefront of the financial system, ease of access has become a key priority for companies in the industry and also for customers. The first critical step in converting a fiat currency (government currency, backed by government reliability) into cryptocurrency is the start of a potentially exciting journey for someone who is expanding their crypto assets by making their first investment. With multinational financial services, such as Visa and Mastercard, processing these transactions in partnership with on-ramp processors, the process is easier than ever. Not only did this make the customer experience smoother, it also accelerated the adoption of cryptocurrencies and expanded the market. Even the Federal Reserve system, the US Central Bank, is getting into the cryptocurrency wave, with President Jerome Powell recently citing the possible benefits of cryptocurrencies and "stablecoins".The growing presence of crypts in conventional markets continued to attract significant investor interest, with the value of mergers and acquisitions (M&A) in the crypto sector more than doubling in 2020 to $ 1.1 billion. And 2022 "is already on track to significantly surpass it across all metrics," according to PwC's global cryptocurrency leader, Henri Arslanian, thanks to major investors, institutional participants and cash-rich platforms. According to PwC, the cryptocurrency market is expanding further and gaining broad endorsement from major investors around the world and is expected to become "more institutionalized" at some point. Some of the most notable businesses in the crypto market in 2020 are the acquisition of CoinMarketCap by the large cryptocurrency broker Binance, which was valued at $ 400 million, and the acquisition of Tagomi, another New York crypto broker, by Coinbase. But this year has been showing even better, since companies that make the exchange between fiat currency and cryptocurrency, are being swallowed up.
M&A activity heating up in May
In late March, Visa announced that it would start accepting payments directly in USDC, which is a dollar-backed stablecoin. Visa's press release came shortly after Mastercard's announcement that it would soon be facilitating crypto transactions. So, since Visa and Mastercard started supporting the cryptocurrency market, there has been an increase in merger and acquisition activity in this sector. Perhaps the most active company has been TechX Technologies Inc., a publicly traded company listed on the Stock Exchange from Canada. She acquired brokerage Xport Digital for 5 million Canadian dollars on May 3. Then, on the 24th of the same month, the company just announced the purchase of Mobilum, a fintech that offers a digital wallet and processes payments between fiat and crypto currency, for 16 million Canadian dollars. Mobilum's simple-to-use solution makes it easy integration for companies whose users buy and sell cryptocurrencies with credit and debit cards. Mobilum guarantees zero chargebacks and claims to have the highest acceptance rates and the lowest transaction fees in the industry, 2.99%. At the moment, the volume of Mobilum's daily processing reaches 100,000 to 250,000 Canadian dollars in transactions for cryptocurrency exchanges that include KuCoin, the sixth largest cryptocurrency exchange in the world. Supporting more than 200 cryptocurrencies and 80 fiat currencies, Mobilum's gateway payment services are accessible to more than 8 million global users. “With few exchanges offering credit card processing, we have seen an exponential increase in the demand for purses and cryptocurrency companies to use on-ramp solutions, ”said Wokjtek Kaszycki, CEO of Mobilum. “With the merger of TechX, Mobilum will be able to increase its liquidity, giving us the ability to process millions of dollars worth of transactions per month.” On May 7, payment processing giant Nuvei Corp. signed a definitive agreement to acquire the fiat gateway for Simplex cryptocurrency for $ 250 million. Simplex is a financial startup that pioneered the world's first fiduciary fiduciary on-ramp using a credit and debit card on a member of the Visa network. As more grants, wallets, DeFi services and institutions implement processing technologies of on and off-ramp payments, this sector may see a significant increase in merger and acquisition activity in the near future. Source: Bitcoinist