New Venture Targets US Institutional Digital Assets
Metalpha, Exos Financial, and BlockchainK2 have announced a joint venture to serve the U.S. institutional digital asset market. The partnership will combine Metalpha's technology solutions, Exos's financial services expertise, and BlockchainK2's market presence. The collaboration aims to provide a comprehensive suite of services for institutional clients entering the digital asset space.
- The joint venture will initially focus on three main services: providing tailored over-the-counter (OTC) derivatives and hedging for institutions and miners, creating digital asset investment strategies, and developing securities-linked transactions that offer exposure to digital assets. - Exos Financial, the U.S.-based institutional finance platform in the venture, was founded in 2018 by Brady Dougan, the former CEO of Credit Suisse who led the bank from 2007 to 2015. - Metalpha is a Hong Kong-based and Nasdaq-listed (MATH) digital asset wealth management firm that primarily generates revenue from cryptocurrency-related transactions, including issuing derivative products to OTC clients. - BlockchainK2 is a Canadian holding company (TSXV: BITK) that invests in blockchain technology and owns a majority stake in RealBlocks, a platform that uses tokenization for secondary trading and distribution of private equity, credit, and real estate funds. - The collaboration is a key part of Metalpha's global expansion strategy, aiming to enter the U.S. market with a compliant, institutional-grade offering by leveraging Exos's regulatory framework and BlockchainK2's technology. - While Exos brings institutional pedigree, the firm experienced financial difficulties in early 2023, including missing payroll and laying off staff, as it worked to establish itself as a "new age investment bank." - BlockchainK2's stock (BITK) has been trading near its 52-week low with a market capitalization of approximately $1.85 million, having declined significantly year-to-date.
