Bitstamp, one of the world’s oldest cryptocurrency exchanges, is making strides in its plans for global expansion. The exchange is currently in the process of raising funds in order to scale its operations. Bitstamp began the fundraising process in late June, with Galaxy Digital Holdings, led by Michael Novogratz, acting as an advisor.
The funds raised will be used to launch derivatives trading in Europe by 2024 and expand into several markets in Asia. Additionally, Bitstamp aims to enhance its services in the United Kingdom. The company’s Global CEO, Jean-Baptiste Graftieaux, emphasized that the primary focus is on raising capital to expand services for both retail and institutional crypto clients. He also made it clear that Bitstamp is not currently seeking to sell the company.
Bitstamp’s fundraising efforts come just a few months after Ripple, a major blockchain firm, acquired a minority stake in the exchange in the first quarter of 2023. Galaxy Digital Holdings also played a role in advising on this deal. The expansion plans align with Bitstamp’s ambitions announced in 2018, when the exchange was acquired by South Korean NXC-backed NXMH. At the time, the co-founders of Bitstamp, Nejc Kodrič and Damijan Merlak, expressed that they were not actively seeking to sell the company or attract investment.
Founded in 2011 in Slovenia, Bitstamp was originally a prominent platform for Bitcoin trading, offering an alternative to the then-dominant exchange Mt. Gox. It has since grown to become one of the largest cryptocurrency exchanges globally, with approximately $127 million in trading volume within a recent 24-hour period, according to CoinGecko.
In June, Bitstamp’s U.K. subsidiary achieved the milestone of being included in the list of registered firms under the U.K.’s Financial Conduct Authority (FCA). This registration further strengthens the exchange’s position and credibility in the cryptocurrency industry.
However, alongside its expansion plans, Bitstamp recently announced trading restrictions on its platform in the United States. Beginning on August 29, the exchange will halt trading of tokens such as Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), NEAR Protocol (NEAR), The Sandbox (SAND), and Solana (SOL). This decision was made in response to recent market developments, although holding and withdrawing tokens will remain unaffected.
Bitstamp’s efforts to raise funds and expand globally reflect the continued growth and development of the cryptocurrency market. As the demand for digital assets increases, established exchanges like Bitstamp are positioning themselves to meet the evolving needs of retail and institutional investors worldwide. The success of its fundraising efforts will enable Bitstamp to strengthen its position in the expanding cryptocurrency landscape and bring advanced trading services to a wider range of users.
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