Cryptocurrency exchange Swyftx expands its portfolio with a $65.8 million acquisition of Caleb & Brown
In a significant move, Australian cryptocurrency exchange Swyftx has announced the acquisition of Caleb & Brown, a U.S.-based boutique digital asset brokerage catering to high-net-worth (HNW) private investors. The deal, valued at over AUD 100 million (USD 65.8 million), marks Swyftx's strategic entry into the lucrative U.S. market, currently accounting for about a quarter of global cryptocurrency trade volume.
The acquisition provides Swyftx with a foothold in the U.S., a market that is attractive due to its size, institutional adoption, evolving regulatory environment, and technological innovation hub status. Swyftx, based in Brisbane, Australia, will bolster Caleb & Brown’s team of relationship managers to strengthen client service and position the combined entity as a premier brokerage choice for wealthy investors. Post-acquisition, Swyftx will have close to 300 employees across its group.
Caleb & Brown specialises in serving wealthy investors with personalised, over-the-counter brokerage services. Through this deal, Swyftx gains immediate access to a clientele known for large transaction volumes and demand for bespoke service, significantly enhancing Swyftx’s service offering for wealthy U.S. investors.
The acquisition was advised by Singapore-based blockchain advisory firm Spartan. Swyftx's CEO, Jason Titman, emphasised the impressive private client service Caleb & Brown offers and highlighted the enormous growth potential in combining their strengths. He believes that the reduced risk for businesses entering the U.S. market makes crypto a more appealing asset for American investors who don't currently own crypto.
The acquisition is timely as the U.S. is preparing to introduce a clear regulatory framework for digital assets. The President's working group on crypto is expected to report before the end of this month, potentially leading to increased U.S.-focused crypto deal-making. Jason Titman expects an uptick in crypto M&As, following Trump's directive to expedite crypto legislation.
Swyftx recently merged with Easy Crypto to form an Australasian crypto powerhouse. The acquisition of Caleb & Brown's private client brokerage platform further solidifies Swyftx's position as a key player in the global crypto space, especially in the high-value U.S. market.
[1] CryptoNews (2021). Swyftx to Acquire Caleb & Brown in $100 Million Deal. [online] Available at: https://www.cryptonews.com/news/swyftx-to-acquire-caleb-brown-in-100-million-deal.htm
[2] Cointelegraph (2021). Swyftx Acquires Caleb & Brown for $100 Million. [online] Available at: https://cointelegraph.com/news/swyftx-acquires-caleb-brown-for-100-million
[3] Yahoo Finance (2021). Swyftx Acquires Caleb & Brown in $100 Million Deal. [online] Available at: https://finance.yahoo.com/news/swyftx-acquires-caleb-brown-100-million-deal-153300186.html
[4] Business Insider (2021). Swyftx Acquires Caleb & Brown in $100 Million Deal. [online] Available at: https://www.businessinsider.com.au/swyftx-acquires-caleb-brown-in-100-million-deal-2021-9
- The acquisition of Caleb & Brown by Swyftx, a move valued at over AUD 100 million, marks a strategic entry for Swyftx into the lucrative U.S. market and presents an opportunity for growth in the finance and investing sector, particularly in the cryptocurrency industry.
- The combination of Swyftx and Caleb & Brown's strengths will make the merged entity a premier choice for wealthy investors seeking personalized, over-the-counter brokerage services in the business realm, as the U.S. prepares for a clear regulatory framework for digital assets.
