Digital Currency Group (DCG), a popular blockchain investment company, has made its first move into the retail crypto market with Luno exchange. The company announced in a report today that it has acquired the cryptocurrency exchange, which mostly runs retail-focused digital currency services.
DCG now owns Luno exchange
The development was reported by Coindesk, which is also owned by DCG. The financial terms for the acquisition were not disclosed in the report. Although the Luno exchange has become a subsidiary of Digital Currency Group, it will still run its services independently, as the report noted. Luno will continue to serve retail traders and investors in digital currency.
The crypto exchange in question was launched about seven years ago. So far, it is actively operating with about 400 staff. It has been named as one of the leading exchanges available in Africa and South-East Asia. Additionally, Luno exchange has garnered more than 5 million users from more than 40 nations span around these continents.
Luno becomes DCG subsidiary
During its early stage, Luno received funding from the Digital Currency Group, which has, in turn, become the parent company. As a result, the Luno exchange is now the first retail-focused business subsidiary to be acquired by the blockchain investment company. DCG has since been dealing with notable institutional platforms.
Commenting on the development, the chief operating officer at DCG, Mark Murphy, said:
“We have invested in many retail businesses all over the world – including nearly two dozen exchanges. But this is the first subsidiary that is a wallet and an exchange, which of course have large numbers of retail investors.”
DCG will not be making new acquisitions actively at the parent company level, as Murphy further revealed in the report:
“But Luno intends to expand globally both organically and through acquisitions. We view this deal as a potential first step towards a ‘roll up’ strategy under Luno.”