Voyager, a crypto brokerage platform that entered the public market this month, has agreed to purchase the Ethos.io wallet startup for nearly $4 million.
This contract will allow Voyager to access a range of products created by the Ethos company, including the Ethos Universal Wallet and the Ethos Bedrock blockchain platform, in addition to “certain blockchain technology and IP.”
“Ethos is excited to have formally announced our partnership with Voyager Digital Holdings Inc. (“Voyager”) to provide a best-in-class Fiat Gateway to our Universal Wallet users. This strategic partnership will bring Crypto-to-Fiat and best execution trading to the Ethos community, while enhancing self-custody and wallet solutions on Voyager’s retail and institutional platforms.” –posted Ethos on its website.
Voyager also stated that it will pick up an allocation of Ethos tokens, which was first issued in an initial coin offering (ICO) in July 2017 by the company under the former name of Bitquence.
The brokerage company will pay for the acquisition using its listed shares. The New York-based startup went public earlier this month through a reverse merger with an inactive company traded on Canada’s TSX Venture Exchange.
The company said the deal will them 7 million common shares, valued at $0.80 in Canadian dollars, which results in a total value of $5.6 million CAD, or around $4 million in USD.
The deal is expected to be finalized at the end of March, with some of the money being paid upfront.
The deal also included that Shingo Lavine, Ethos founder and CEO, will assume the position of Voyager’s chief innovation officer and join the company’s board. Ethos’ former owners also will have the right to propose one director to be appointed on the board at each annual general meeting, when at least 3.5 million shares will be gathered.
“Voyager will give Ethos users the power to convert fiat currency into the Ethos Token or other crypto assets and these tokens into fiat, all within their wallet, allowing a seamless mechanism to trade through Voyager’s platform. This best-in-class Fiat Gateway, and crypto to crypto exchanges and trading, will utilize Voyager Smart Router & Liquidity Network system.”
After the purchase will be completed, the two developer teams begin working together to achieve the same goals, said Steve Ehrlich, Voyager’s CEO:
“Before we had separate priorities, but we liked so much what we started together as strategic partners that we decided to bring our resources together. There is some different expertise at the two developer teams, and now they are working closely together.”
Ehrlich also said that the Ethos token, which first entered the market in July 2017, will represent a valuable element in Voyager’s business.
Featured Image: Ethos.io