Coinsquare has announced that it has acquired Blockeq- a digital assets’ wallet operating on the Stellar network. The company announced the $9 million deal during a press release on December 6 making it the first investment Coinsquare is making in a Blockchain-related startup.

BlockEQ

Holders of the BlockEQ stellar wallets enjoy services like buying, trading and even securely storing XLM and other cryptos supported by the network. The acquisition of BlockEQ is a strategic move by Coinsquare to enter the Stellar Ecosystem while expanding its range of offerings.

Coinsquare

Currently Coinsqure is the second largest digital assets exchange platform in Canada according to market capitalization. The exchange handles more than $7 million worth of cryptocurrency trades daily making it the 73^rd most sought after platform globally.

As the cryptocurrency market remain unpredictable for several weeks in a row now, companies in the space are adjusting their business models to maintain financial soundness. Firms’ earnings have slid dramatically and it is evident that when the situation fails to improve many businesses shall be rendered unprofitable.

It is for this reason that firms like Consquare are employing acquisition strategies to continue staying in business until the storm subsides.

The Future

Now that Coinsquare has entered the stellar-network ecosystem, the company plans to leverage on its new subsidiary’s expertise to develop new products and services to beef up its existing offerings. The companies will work jointly to create their first stable coin among other digital assets.

It appears that stablecoins is the way to go now that cryptocurrencies are becoming highly volatile in a manner that is likely to scare new players. Stablecoins are literally cryptos that are backed by a relatively stable currency or asset like the USD, Yen, Oil or Gold among others.

Speaking about the acquisition, Cole Diamond, Coinsquare CEO said that “They [BlockEQ] are one of Canada’s best tech teams, and the product they’ve built is immensely valuable. That combination in partnership with Coinsquare’s technology and team means that we have the opportunity to build amazing things for the cryptocurrency community in Canada and far beyond.”

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