Circle Internet Finance has struck a deal to sell its crypto investing app business to Voyager Digital Canada for a four per cent stake in the firm.
The transaction adds more than 40,000 retail accounts to Voyager's customer base, bringing Voyager's total user numbers to 200,000 after customers are migrated over the next few weeks.
The deal sees Voyager issue common shares to Circle representing an ownership stake of about four per cent in the company. Voyager will also reimburse some costs incurred by Circle.
Voyager says Circle Invest's customers will now get access to its brokerage services, which include commission-free trading of more than 30 crypto assets, lock-up free interest yield on popular coins, digital transfers, secure omnibus custody wallets and portfolio management tools such as limit orders, news and alerts.
The two firms say they will also partner on "strategic business initiatives" and that Voyager will tap Circle's USDC and platform products to solidify its treasury management infrastructure and expand internationally.
"This product line acquisition signifies a tremendous development for Voyager as we welcome a substantial number of new users to our platform," says Stephen Ehrlich, CEO, Voyager. "This transaction also helps us deliver on our promise to investors, providing regulated brokerage services and resources to as many users as possible in the digital asset marketplace."
Circle has been busy shedding parts of its business in order to focus on its stablecoin work. In October it spun out crypto exchange Poloniex while the Circle Pay app has been shuttered.
Rachel Mayer, director, product management, Circle, says: "This transition comes at a time when Circle is launching new platform services and products for businesses around the world to help them bring the benefits of stablecoins into their products and grow global commerce in new and innovative ways."