The digital asset group, which is managed by blockchain software company Block.one, announced on Friday that it would merge with Far Peak Acquisition Corp, a blank check company run by the former chairman of the New Stock Exchange. York, Tom Farley.
The deal values Bullish at around $ 9 billion, a figure that largely includes the $ 692 million in cash held at Far Peak and the assets and investments provided by Thiel, Bacon, Block.one and others to capitalize on it. Bullish Global in May.
Hong Kong businessman Richard Li, German financier Christian Angermayer, Michael Novogratz’s Galaxy Digital and Nomura, the Japanese investment bank, also backed Bullish.
Bullish’s move, which plans to launch a digital asset exchange but has yet to start trading, highlights pressure from crypto investors to list their fledgling projects in the United States, the world’s largest stock market.
Circle, the U.S. financial technology company behind USD Coin stablecoin, on Thursday announced plans to merge with a special purpose acquisition vehicle and list on the New York Stock Exchange.
Bakkt, a cryptocurrency platform majority-owned by classic exchange giant Intercontinental Exchange, is also expected to be listed following a combination with acquisition vehicle Victory Park Capital in January. Coinbase, the exchange, also debuted on Wall Street in April.
Bullish and its backers are betting on the growth of decentralized finance, or DeFi, a market that has grown from around $ 15 billion at the start of the year to $ 65 billion, according to an estimate by JPMorgan analysts in May. .
The group will operate a decentralized trading network, which will allow users to buy and sell digital assets directly with each other and bypass intermediaries that charge fees, such as a stock exchange or clearinghouse.
It will encourage trading using automated market makers, who do not trade through the central order book of an exchange. Instead, they deposit their assets into a computer-coded contract, and algorithms find buyers and manage buying and selling.
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Asset owners are encouraged to participate in the pool of fees generated by the trading activity. Bullish plans to launch a pilot of its exchange for potential users to test in the coming weeks.
Decentralized commerce is still in its infancy and the largest networks are built on the ethereum blockchain, a rival to Block.one’s EOS.IO.
Experts have described the challenge market as the most difficult in the world to trade because it is anonymous, there are hundreds of coins and they all have different trading characteristics. Hackings are also common, according to blockchain analytics group CipherTrace. Users have also complained about the high fees charged to offset the computational energy required to execute trades on Ethereum.
Farley will become CEO of Bullish and Block.one CEO Brendan Blumer will be appointed President of Bullish. “We are only in the first or second round of the cryptocurrency market and I am delighted to join the bull team as we revolutionize the future of digital assets through advanced financial technologies” , said Farley.
The deal is expected to be finalized by the end of the year.