U.S. Based Startup Wyre Acquires Bitcoin Derivative Startup Hedgy
Wyre Inc, a U.S. based Fintech specialized in facilitating cross-border payments firm, has announced the acquisition of the blockchain-based smart contract platform Hedgy, which previously raised $1.2 million in a seed funding round.
Wyre purchases Hedgy
The U.S. based crypto payments startup Wyre announced via a Medium post on Friday, September 7, that it has acquired 100 percent of Hedgy, a venture-backed bitcoin smart contract development firm for an undisclosed sum.
According to Wyre, the acquisition of Hedgy’s platform brings the company closer to its goal of offering a derivatives software product that is compliant with US commodity regulations.
Both blockchain startups focus primarily on facilitating accessibility for financial instruments around the world enabled by the blockchain technology.
Wyre is in the process of developing services and product offerings and it hopes to leverage the traditional financial tools developed by Hedgy to innovate their new blockchain system.
“The Hedgy team built an incredibly powerful product that can unlock a new level of accessibility for financial instruments around the world. In addition to incorporating their technology into our stack for partners and users, I’m pleased to say that Matt Slater (Co-founder, CEO) is joining us as an advisor.”
Asides being a blockchain application development platform, the Hedgy platform also provides Bitcoin derivatives.
This feature focuses particularly on commercial miners, with it, miners can lock in a price at which they want to sell Bitcoin in the future, using smart contracts to settle the transaction on the bitcoin blockchain.
Broader spectrum for Wyre
Wyre’s acquisition of Hedgy will strengthens the startup’s efforts to help lower the barriers to entry for Fintech entrepreneurs by offering them compliant ports into a regulated fiat world.
The company’s co-founder and Chief Operations Officer Ioannis Giannaros told CoinDesk that the firms acquisition of Hedgy will help Wyre broaden the scope of the services it provides to crypto startups.
According to the Ioannis Giannaros, Wyre plans to take advantage of Hedgy’s ability to “navigate” the regulatory space.
Till date, Hedgy has already been effective in complying with some of the difficult regulations within the existing financial world. He explained:
“This is a really highly regulated area, and in this sense Hedgy generally has been extremely ahead of the time. They were doing smart contract derivatives at the time ethereum wasn’t even there yet.”
Wyre states that in the world of Bitcoin, the volatility that the markets have seen is part of the appeal to retail speculators, investors, and professional traders. Over time, Wyre expects to see this volatility cool down.
Wyre’s main focus remains facilitating cross-border transactions, with a particular emphasis on those sent between China and the US.
The blockchain platform facilitates cross-border transactions using Bitcoin, Ethereum, Litecoin and other cryptocurrencies to settle transactions.
Furthermore, the acquisition of a smart contract platform with access to financial instruments such as forward contracts, swaps and more, will help Wyre provide a wider financial ecosystem to crypto startups.
In future, Wyre hopes to offer a less toxic OTC trading experience by introducing the blockchain technology to the traditional over-the-counter financial market.