Voyager Digital has completed a merger with LGO, which will give the crypto broker a fully regulated European platform. With Voyager’s European operations merging with LGO, it will accelerate the company’s move into the European region. Voyager offers a commission-free platform for investing in digital assets and recently cracked $100mm in assets under management.
Voyager Digital And LGO
Voyager Digital, a licensed crypto-asset broker, has finalized its merger with LGO. Following the merger, Voyager expects to formulate a fully regulated European platform for digital asset investors. Among agency brokers in the United States, Voyager already offers the widest selection of assets for institutional and retail investors. In a push to expand into other markets, the merger with a regulated entity will accelerate the company’s move into the European region. LGO, SAS, is an entity that is regulated by the AMF ( France’s stock market regulatory authority ).
Steve Ehrlich, the Co-founder, and CEO of Voyager stated that:
“This merger gives Voyager the ability to service the 750 million European population with the most consumer-friendly agency brokerage platform for investing in crypto assets. We look forward to our international expansion as Voyager’s growth continues on all fronts, with AUM growing rapidly and our product offering continually enhanced with debit and credit card, margin, and more traditional banking products on the horizon. We look forward to making Voyager a truly global company and having Gaspard de Dreuzy lead the integration efforts in Europe.”
How Does LGO Benefit?
LGO is one of the fastest-growing crypto liquidity providers for institutions. As the market continues to scale, LGO was seeing increasing interest in complex financial products. With the company primarily focusing on spot trading, they were forced to make strategic moves. According to a blog post, LGO was either going to enhance their infrastructure to suit institutional clients, or they were going to leverage their current framework and focus on retail investors.
After deciding to focus on the emergence of retail investing, LGO decided to join forces with Voyager. By integrating both infrastructures, LGO has a path into retail offerings, and Voyager has the ability to scale quickly in Europe through a regulated entity. Both companies believe they have the proper resources in place to create the leading cryptocurrency brokerage in Europe and the United States.
Token Swap
It is important to note that Voyager and LGO have their own native tokens ( VGX & LGO ). This merger also means that the companies will be merging their corresponding tokens. The merged token will be called VYGR. Holders of VGX and LGO will have the opportunity to swap out their old tokens for the new merged token.
VYGR will become the new token on the Voyager app and will offer more utility and features. With the token swap expected to occur in the first quarter of 2021, here are some of the features to expect with VYGR:
- Decentralized features such as community governance
- Staking with the initial interest of 7%
- Cashback rewards for placing trades on the Voyager platform
- Debit card incentives
- Interest rate boosters
- Reduction in costs affiliated with withdrawals
Steve Ehrlich, Co-founder, and CEO of Voyager, also stated that:
“We are excited to create an improved token to bring greater utility to our loyal community. Historic holders of VGX have benefited from our rewards programs and interest boosters. Now with the new coin, holders will enjoy additional features over time.”
Big Year For Voyager
Aside from the merger, Voyager has continued to scale the brokerage all year long. Back in September, it was reported that the crypto-broker was expanding its offering model by supporting DeFi assets. With DeFi markets taking off in 2020, Voyager is ensuring that investors have a one-stop destination to purchase top digital cryptocurrencies and DeFi assets securely.
After listing its 50th digital asset, Voyager also reported that they foresaw a 200% increase in quarter-over-quarter revenue for fiscal first-quarter 2021. The CEO expects these revenues to surpass $2 million.
Among many other announcements, Voyager has seen its AUM grow by more than 20x this year. In November, the company reported $100 million in assets under management. This was up from just $5 million in November 2019.
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