Swedish bitcoin exchange Safello has acquired Cryex, which was developing a blockchain-based platform for post trading, in a share deal.
Tech news site Breakit first reported on the deal this week. Safello CEO Frank Schuil (pictured) confirmed to tech.eu that Safello has acquired the struggling company, which was the subject of reports last year claiming that it was seeking funds to stay in business.
Reports in the Swedish press claim the acquisition deal is valued at 20 million SEK (€2 million) which is considered rather low but Schuil would not confirm this figure. Stockholm-based Cryex had raised over $10 million in VC funding.
“What I can say is that Safello is the majority acquirer,” said Schuil.
“We’ve been in negotiations with them for the past months. We’ve known them for quite some time and we know what they’ve been aiming to do with the platform,” he said.
Cryex never got to the point of launching its blockchain platform for post trade processing in the financial sector “for different reasons”.
“They never launched the platform, but they created tremendous value in the platform design and the regulatory side,” Schuil said. Furthermore, there will be members of Cryex joining the Safello team, though there had been a slimming down of staff at Cryex in the past.
As well as the acquisition, Safello is in the process of raising an equity investment round from Northzone and White Star Capital. The funds will be used to reactivate Cryex’s technology and agreements.
“We have secured an agreement with Cinnober, which is one of the leading market infrastructure players, to extend the agreement to activate it under the Safello ,” the CEO added.
It also preparing a token sale that it plans to launch in early 2018 where it will set a minimum cap of $10 million and a max of $30 million.
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