- VersiFi, a cryptocurrency trading and lending company, has purchased Ather Digital for an unknown amount.
- VersiFi plans to grow in the UAE and incorporate Ather’s trading technology into its platform.
For an undisclosed amount, VersiFi, a cryptocurrency trading and lending company co-led by a former executive of Genesis, has acquired Ather Digital, a startup providing cryptocurrency trading technology.
VersiFi announced on Thursday that the agreement will assist in integrating algorithmic trading, intelligent order routing, and direct market access into its platform.
Although the terms of the deal were not published, Sameer Shalaby, the founder and co-CEO of VersiFi, told The Block that it was a “all-stock” transaction in which all owners of Ather Digital got shares of VersiFi.
Manifold Capital Partners, a quantitative investing firm that Ather Digital was split off of in 2022, is one of those stockholders.
Ather’s technology was built to satisfy the needs of Manifold and other high-frequency trading hedge funds in the cryptocurrency trading space. As of right now, VersiFi’s “minority” stockholders include Manifold and other Ather investors.
The transaction was completed about six months after VersiFi launched its cryptocurrency trading and lending firm in November of last year by raising $10 million in Series A funding. Martin Garcia, a former managing director of Genesis and co-head of financing and trade, was also hired at that time to serve as co-CEO.
VersiFi met Ather Digital in December, according to Shalaby. Then, he said, acquisition negotiations started in January, and this month the deal finalized.
Assisting large-scale investors
Regarding VersiFi’s rationale for acquiring Ather Digital, Shalaby stated that recent spot Bitcoin ETF approvals in the U.S. and other countries formally embracing or regulating the space have “significantly increased” market activity and investors’ focus in the crypto space over the past six months.
In light of this, Shalaby stated that VersiFi has expedited its goal to provide institutional investors with more comprehensive trading capabilities, ranging from bi-lateral to high-frequency trading.
He also said that VersiFi and Ather’s direct market access (DMA) have natural synergies because DMA clients have been ready to borrow more and enhance their leverage.
DMA eliminates the need for brokers by enabling investors to make orders straight on exchange order books. Faster trade execution is made possible by this direct connection, which is advantageous for algorithmic and high-frequency trading methods that demand accuracy and speed.
Plans for offshore expansion
According to Shalaby, VersiFi, a U.S. based company, would expand its global reach in the jurisdiction by utilizing Ather’s Abu Dhabi office and personnel. He continued, “Once we are fully regulated in the UAE, which we expect to happen over the next quarter, our focus is offshore markets.”
About a dozen members of Ather’s team have joined the VersiFi team, according to Shalaby. Sidharth Sankhe, the company’s founder and chief technical officer, has joined VersiFi as the head of quant trading technologies.
VersiFi now employs approximately 25 people, and Shalaby said the company intends to grow its trading and operations team in Abu Dhabi.
According to Shalaby, VersiFi is not currently seeking to raise further funding. Regarding Ather’s total fundraising to date, he opted not to comment. According to him, Ather will function as a crucial component of VersiFi and there are no immediate plans to seek outside finance.
According to Shalaby, VersiFi and Ather were not represented by outside bankers during the transaction; instead, they were advised by the law firms Simmons & Simmons, Morgan Lewis, Reitler Kailas & Rosenblatt, and Seward & Kissel.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
