Matrixport, a Singapore-based cryptocurrency firm, announced on Monday that it has expanded into Switzerland by acquiring Crypto Finance Asset Management (CFAM).
Previously part of the Deutsche Börse Group, CFAM is a well-known company in Switzerland’s crypto asset management space.
With this acquisition, Matrixport is moving closer to its goal of growing its services in Europe and offering innovative investment solutions for crypto assets.
The acquisition has also led to CFAM being renamed Matrixport Asset Management (MAM).
This new entity will provide a wide range of crypto investment products aimed at institutional clients, which typically include large financial institutions, pension funds, and hedge funds.
Additionally, Stefan Schwitter, who previously led CFAM, has been appointed as the new CEO of MAM.
Strategic expansion and regulatory compliance
The acquisition of CFAM represents an important step for Matrixport, which manages $6 billion in assets.
By expanding into Switzerland, the company is making its mark in one of the world’s most significant financial hubs. The country is known for its strict financial regulations, so this move shows that Matrixport is serious about compliance.
Matrixport’s Chief Compliance Officer, Christopher Liu, explained the importance of staying within regulatory frameworks while continuing to innovate.
“The acquisition reflects our steadfast commitment towards continually collaborating with regulators to review existing regulations and refine virtual asset-specific regulations in the years to come”, said Liu.
This highlights that the firm is keen on working with regulators to make sure it can continue operating smoothly in the region.
Additionally, Matrixport has received all the required regulatory approvals for the acquisition, including from FINMA, Switzerland’s financial market regulator. This approval is significant because it ensures that the company is complying with local laws and standards.
Leadership and client benefits
One of the key aspects of this acquisition is the expertise that CFAM brings to Matrixport. Stefan Schwitter, who served as the head of CFAM before the acquisition, has taken on the role of CEO for Matrixport Asset Management.
He would bring years of experience in crypto asset management, and his leadership is expected to help drive the company forward in its new European market.
According to Schwitter, the acquisition will provide substantial benefits to clients worldwide. He emphasised that by combining the knowledge and resources of both CFAM and Matrixport, they will be able to offer better and more diverse products to investors.
These products are aimed at institutional investors, who will now have access to a broader range of crypto investment opportunities.
Matrixport’s CEO, John Ge, also expressed his excitement about the acquisition. He stated that the new company, MAM, will provide clients with the most advanced and compliant crypto investment products.
“The acquisition enables clients access to the most innovative, compliant crypto asset management products, and aligns with our strategy to further expand services in Europe”, Ge added.
Future plans
CFAM has a strong reputation in Switzerland. In 2018, it became the first company in the country to receive a licence from FINMA to manage crypto assets.
This allowed CFAM to offer products that tracked popular cryptocurrencies, such as Bitcoin, and to compete with traditional asset managers in the country.
One of CFAM’s most well-known products is a fund that tracks the SIX Crypto Market Index 10. This fund focuses on the top 10 largest cryptocurrencies by market value.
Now, as part of Matrixport Asset Management, this product line could expand further, offering even more opportunities for institutional investors looking to diversify into crypto assets.
Matrixport has also been making strides outside of Switzerland. The company has been actively growing its global team and hiring key staff members in both Asia and Europe.
To date, Matrixport has secured important licences in both Hong Kong and Switzerland. These licences are necessary for the company to offer its services in these regions and to stay compliant with local regulations.
