CrossTower to acquire institutional prime brokerage BEQUANT

Cryptocurrency exchange CrossTower Inc has agreed to buy digital asset trading platform BEQUANT, which comes after months of window shopping by CrossTower for crypto companies, including a recently revised offer for Voyager Digital’s assets.

The Nov. 28 acquisition agreement will provide CrossTower with over 600 new professional exchange clients in addition to its existing clientele. The incoming clients are based across the United States, Europe, Asia, and Latin America and are collectively making over $400 billion annually.

The purchase agreement comes as CrossTower CEO Kapil Rathi stated on Nov. 24 that CrossTower has long been on the lookout to buy digital asset companies with a “good set of customers” and a “good balance sheet,” which included a second look at the now-bankrupt cryptocurrency lending platform Voyager, who is back on the market after its initial agreement with FTX recently fell through.

Rathi said the access to over 600 exchange clients through the BEQUANT acquisition would also better position the firm to assist in re-establishing industry trust, which has been significantly dampened by recent events with FTX.

CrossTower’s deal is bei backed by London-based financial services firm Lydian Group, with CEO Gerard Lopez stating that he hoped CrossTower’s acquisition would lead the way in bringing more professionalism and transparency to the industry.

CrossTower introduces ESG Crypto Fund

The trading platform also announced its offering of an Environment, Social, and Governance (ESG)-focused Crypto Fund which will invest in “promising” companies that demonstrate a sufficient level of social and governance accountability in addition to efficiently managing energy costs.

While CrossTower didn’t disclose any potential companies that may become part of its new fund but the trading platform said it would look for companies that aren’t fueled by “greed” and instead prioritize “the democratization of finance.”

CrossTower added it would look for digital asset companies with a “proper board structure […] checks and balances, and traditional business expertise” adding the crypto companies “in trouble” today are due to “human failure.”

The announcement of CrossTower’s ESG Crypto Fund comes as a number of industry leaders recently told Cointelegraph that The Ethereum Merge, which took place on Sept. 15, would become a “big factor” behind institutional investment decision-making, particularly for firms like Fidelity Investments, BlackRock and Goldman Sachs who have ESG mandates.

Interestingly, a June study by investment management firm Morningstar found that 80% of investors who hold ESG-themed investments also own cryptocurrencies as reported by CNBC.

By contrast, the study also found that only 22% of non-ESG investors own cryptocurrencies.