Financial trading fintechs Superhero and Swyftx have announced a $1.5 billlion merger to build a platform that will allow cryptocurrencies, shares, and superannuation to be managed in the one place.
The two business intend to offer traditional and decentralised finace, plus trading and investing in cryptocurrencies, equities and superannuation.
Australian cryptocurrency exchange Swyftx and online share trading and superannuation platform Superhero announced the merger will bring 800,000 customers to the their financial services offering.
The merger is expected to be completed in early 2023, with both fintechs continuing to operate separately for the time being.
Swyftx’s cryptocurrency exchange provides access to more than 320 digital currencies and other crypto features, while Superhero’s says it has grown its ASX trading platform to 200,000 investors since it went live in September 2020.
Swyftx co-founder Alex Harper and Swyftx CEO Ryan Parsons will become co-CEOs of the combined business.
Harper said the proposed merger “represents a significant step for both businesses in terms of their evolution from disruptive tech players into a single, major financial institution that can grow across domestic and international markets.”
“There is a deep level of mutual respect and alignment between our teams and the experience that the Superhero team has in the regulated business will be enormously important in shaping the future of the combined entity, especially with digital currency going through its own journey towards regulation.”
Superhero co-founder John Winters is set to lead the financial services arm of the business and take a position on the board once the merge is finalised.
Winters said the announcement is “is an incredibly exciting day” for the two companies “as well as all of the investors who utilise our combined services.”
Late last year, CBA paused its cryptocurrency trading platform but annouced it will offer trading services in its mobile banking CommBank app.
The major bank said during its strategy update in May CommSec Pocket will now be integrated into the CommBank app, allowing new customers will be able to manage smaller investments directly through their banking app.
Australian Prudential Regulation Authority (APRA) chairman Wayne Byres said in April this year that “banks have been forced to respond to innovation occurring around them”.
Byres added Australia’s financial system response to new digital disruptors is still “foggy” and “highly uncertain”.