WonderFi Technologies – a technology company providing access to decentralized finance (DeFi) – is reportedly considering a merger deal with trading platform Coinsquare.

The goal would be to establish the largest cryptocurrency exchange in Canada.

A deal on the horizon

According to a Bloomberg report, the two sides are in advanced merger talks. However, WonderFi did not comment further, saying the discussions could not guarantee cooperation:

“These discussions are preliminary in nature and ongoing, and no assurance can be given that agreements or settlements will be reached, or that the terms of a transaction will be agreed upon, or that a transaction will be completed.

The company does not wish to comment further until or unless an agreement is made and the transaction is announced.”

If the two companies join hands, they could create Canada’s largest cryptocurrency platform. WonderFi has around 650,000 users and Coinsquare has 500,000 users so the potential trading space will have more than 1.15 million customers.

The exact terms of the deal are unclear. However, one scenario sees Coinsquare shareholders taking a majority stake in the combined company and controlling more seats on the board of directors.

WonderFi – which was financially backed by popular TV personality Kevin O’Leary – saw its stock rise shortly after the rumors surfaced. WNDR is currently trading at around $0.23, up nearly 30% from yesterday’s figures.

Coinsquare was there The first Canadian cryptocurrency company to become a member of the Investment Industry Regulatory Organization of Canada (IIROC) in October last year. This registration mandated the firm to segregate client assets through a licensed custodian and keep more capital on hand. Additionally, Canadian Investment Protection Funds guarantee clients’ money held in trading accounts.

Coinsquare was close Acquisition Its competitor CoinSmart Financial recently brought two Canadian crypto companies under one roof. The company eventually withdrew its intentions after calculating “unacceptable costs and risks” associated with the deal.

Acquisition of WonderFi

The O’Leary-backed firm increased its presence in April last year Purchase Toronto-based cryptocurrency exchange – Bitbuy Technologies – about $163 million.

WonderFi doubled a week later, Purchase The Coinberry platform is worth about 30 million dollars. The latter had more than 150 employees and 750,000 customers.

“We are definitely gearing up to go head-to-head on the global stage. But remember, unlike other players, we are doing this on a regulated basis. We are 100 per cent on order and taking no risk,” O’Leary said then.

WonderFi joins Coinsquare to create Canada’s largest cryptocurrency exchange ( report )