One of the big-name blockchain investment companies, Digital Currency Group (DCG) has acquired Luno exchange. The development strengthens the company’s first move into retail-focused cryptocurrency businesses, as it mostly deals with institutional-grade businesses. Meanwhile, DCG may no longer make additional acquisitions at the parent company level, anytime soon.
Luno exchange becomes a subsidiary of DCG
The acquisition of Luno exchange by DCG was confirmed in a Coindesk report on Wednesday, despite the financial terms not being revealed at the time. Although as a wholly-owned subsidiary of the investment group, the exchange will continue to operate independently, serving retail cryptocurrency investors and traders, as both companies noted.
Meanwhile, DCG will not be announcing any new acquisition at the parent company level as often as before, according to Mark Murphy, the chief operating officer at DCG. He noted:
“But Luno intends to expand globally both organically and through acquisitions. We view this deal as a potential first step towards a ‘roll up’ strategy under Luno.”
DCG’s first retail business subsidiary
Notably, Luno exchange has become the first crypto business to be fully owned by the Digital Currency Group, with a major focus on retail customers. Commenting on this, Murphy added that:
“We have invested in many retail businesses all over the world – including nearly two dozen exchanges. But this is the first subsidiary that is a wallet and an exchange, which of course have large numbers of retail investors.”
Luno was established in 2013, and it has grown to become one of the leading digital currency exchanges in Africa, including South East Asia. Noteworthily, DCG was one of the companies that invested in the exchange during its early stage, precisely in 2014. The exchange now boasts of working with 400 staff and 5 million users from more than 40 countries.