Voyager Digital Crypto Review of Recent Events
A wave of announcements ranging from strong positive quarterly numbers to mergers and new features added to its brokerage platform makes Voyager Digital a company that is promising for its offerings and execution at this juncture. Let’s look at Voyager Digital Crypto Review of Recent Events.
Voyager Digital, a public agency crypto broker regulated under FinCen , offers custody and broking for digital assets. Its iOS and Android apps also provide tools such as advanced charting, news and research. The apps connect to more than a dozen secure crypto exchanges and thus provide enhanced liquidity for trades. The Voyager Smart Order Router finds the best execution price for trades across these exchanges. In the US, the service is available to all US residents except in New York. Voyager is also expanding internationally with its recent forays in Canadian and European crypto markets.
Its no-commission model matches other multi coin broking platforms such as Robinhood. Coinbase which charges a commission and also benefits from spreads is also a competitor due to its long standing presence as a trading platform and due to its large coins listing.
A public listed company:
Voyager Digital became a publicly traded company in 2019 through an all-stock acquisition valued at $60 million. Rather than issuing an initial public offering of shares, the company executed a reverse takeover and purchased shares of publicly traded UC Resources until it effectively became public.
Going public allows any company access to capital markets while allowing investors to participate in growth stories. A public listing of a crypto firm allows traditional investors to participate in the growth of emerging digital assets through stock ownership.
Voyager Digital’s public listing has mandated quarterly and annual disclosures, as well as disclosures of any mergers, acquisitions, insider trading and changes in company ownership. The accountability required by the regulatory framework for public companies is a positive in the crypto space that is an emerging one. In the context of pending regulatory framework for crypto assets, the added transparency of Voyager Digital due to its public listing is seen as an advantage.
Voyager Digital’s reverse takeover and public listing is not the first of its kind. Earlier, Galaxy Digital Holdings went public through a similar takeover of Bradmer Pharmaceuticals.
Voyager Digital was founded in 1993 by a group of Silicon Valley and Wall Street experts and has its headquarters in Vancouver. Its management brings enriched perspectives from having worked at E*TRADE, Uber, TradeIt, and Lightspeed Financial. Voyager Digital received several series of funding before going public.
After the reverse takeover, it was listed on the Toronto Venture Exchange under the ticker VYGR.V in February 2019. Seven months later, in October, it was listed on the Canadian Securities Exchange with the ticker VYGR where it has a market capitalization of $69 million at the time of writing.
Voyager Digital also trades over the counter under the ticker VYGVF and on the Frankfurt exchange under the ticker UCD2.
What differentiates Voyager Digital
Voyager Digital is a digital assets only broker platform and allows several cryptocurrencies to be traded between exchanges on a single mobile app. It seeks best price executions for its users through smart contracts, which get trigged when certain conditions are met.
Voyager Digital provides the opportunity for users to earn interest in their portfolios. Its Voyager Interest Program allows users to trade while earning an interest. The rate of interest depends on the asset in question and the minimum balance maintained. For stablecoin USDC which is linked to the US dollar, the interest rate is highest at 9.5% with 100 USDC in the account. Bitcoin earns 6.5% on a minimum balance of 0.01BTC while Ethereum earns 5% on a minimum of 0.5ETH. Voyager’s own token VGX earns 3% on a minimum balance of 5000. Voyager has also announced a booster interest of .05% if the user holds 7500 VGX or more in the Voyager portfolio. Out of a total of over 50 crypto coins available on Voyager, 17 are interest-bearing assets when minimum balance requirements are met.
The company has also been growing its footprint in DeFi and recently extended support to Uniswap’s UNI, yearn.finance’s YFI, Kyber Network’s KNC, Polkadot’s DOT and Band Protocol’s BAND.
Voyager Digital has just signed up to buy French crypto exchange LGO as a way to entering European markets. This merger will also result in the VGX and LGO’s tokens merging. Voyager Digital is already listed on the Frankfurt stock exchange under the ticker UCD2 and has been trying to expand in Europe.
.CEO Steve Ehrlich recently announced that the company expects around $2 million in revenue in the quarter ended September 30. That is an exponential growth from the $1.1 million reported in the last fiscal year.
In October, it added institutional and corporate accounts to grow its banking, trading, and custody businesses and hired Lewis Bateman as head of business development and international strategy. Lewis Bateman held a senior role in the Toronto Stock Exchange before joining Voyager Digital.
In September, Voyager Digital announced the integration of the Fireblocks network which offers a platform for digital assets transactions.
In August, the company hired Evan Psaropoulos as its CFO and added former research analyst Michael Legg as head of communications.
In July, the company announced that it will launch its app in Canada, marking its first international entry.
In February, it acquired retail digital assets trading firm Circle Invest. With the acquisition, Circles 40000+ clients started using Voyager Digital. Circle is available only in the US and has a feature called ‘Collections’ wherein a basket of digital assets may be purchased in a single transaction. The selection is based on the market cap of coins.
In January, the company acquired digital brokerage platform VYGR Digital Securities Ltd.
The company has been acquiring key partners as it expands it service on institutional and retail platforms. Back in February 2019, it closed a $4 million deal to acquire digital custody service Ethos. The deal sought to combine Voyager Digital’s trading feature with Ethos’ safe custody service.
The astronomical growth announced recently by the CEO, the series of mergers and acquisitions that enhance Voyager Digital’s app and service, making it easier for users to find the best execution through liquidity and synced custody and trading, the transparency and accountability of a public listed company that is rare in the cryptoverse, the increasing presence in international markets can make Voyager Digital a promising company for digital assets users and traditional investors.