Investment solution Fidelity International acquires a stake in crypto company BC Group
Tue, 25 Feb 2020, 10:17 am UTC
Investment solution Fidelity International has acquired a stake in crypto company and digital asset platform BC Group, Cointelegraph reported.
BC Group is the operator of OSL, a digital asset platform that provides a variety of services for institutions interested in crypto assets. Among its services are Software as a Service (SaaS) tool, Over the Counter (OTC) brokerage, custody services, and institutional digital asset exchange. It purchased 17 million shares giving it a 5.6% ownership.
Fidelity International’s acquisition was revealed by a Hong Kong Stock Exchange (HKEx) disclosure filed on Feb. 17, but the actual transaction occurred on Feb. 12. Fidelity International reportedly purchased HK$110.5 million ($14.2 million) worth of BC Group shares for only HK$6.50 ($0.83) each.
The purchase is part of a $36 million share placement announced by BC Group last month. The 19 million shares were first issued on Feb. 12, making Fidelity International a direct investor of the company based in Hong Kong.
“The raise represents a new phase of growth for the Group. It allows us to further invest in key areas such as technology and compliance which will be essential as we compete and win in this dynamic environment,” said BC Group CEO Hugh Madden.
He added that the digital asset market is going through a speedy dynamic and noted that in the regulatory perspective, “every major jurisdiction is rewarding only the strongest and most professional operators, and these firms will continue to capture market share from unlicensed players.”
Meanwhile, digital currency exchange Coinbase became the first crypto company to receive Visa principal membership. Prior to that, Coinbase launched a Visa debit card called Coinbase Card in the U.K., which was later expanded to customers in 29 markets. It allows customers to spend their crypto just like their money in their bank account. The Visa membership was deemed a significant milestone in the mainstream adoption of crypto as a genuine utility.
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