- Stillman Digital Acquisition: DeFi Technologies has successfully acquired Stillman Digital, a leading digital asset liquidity provider with over US$20 billion in trade volume since 2021, with US$5 billion of that occurring in Q2 2024 alone. Stillman Digital provides digital asset products and services in electronic trade execution, market making and OTC block trading.
- Strategic Growth: The acquisition of Stillman Digital aligns with DeFi Technologies’ goals of enhancing trading capabilities and diversifying both its customer base and revenue streams. By internalizing trading flows from portfolio companies like Valour, DeFi Technologies will leverage Stillman Digital’s expertise to strengthen its arbitrage trading desk, DeFi Alpha and global operations. The acquisition also supports Stillman Digital’s institutional growth strategy, offering access to opportunities within DeFi Technologies’ network, balance sheet, and distribution channels.
- Future Revenue Drivers: Stillman Digital Bermuda plans on expanding into new business segments with the support of DeFi, including Custody, Foreign Exchange, and Proprietary Trading, which are expected to drive future growth.
DeFi Technologies Inc. (the “Company” or “DeFi Technologies“) (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralized finance (“DeFi“), is pleased to announce the successful completion of its acquisition of Stillman Digital Inc. and Stillman Digital Bermuda Ltd. (collectively doing business as “Stillman Digital“1), a leading global liquidity provider offering industry-leading trade execution, settlement, and technology services (the “Acquisition“).
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Stillman Digital’s Core Products & Services
- Electronic Trade Execution: Stillman Digital generates over US$500 million in monthly volume with 24/7 streaming prices, providing deep liquidity across available assets. Clients can execute trades via the Web Portal or API, with price feeds aggregated from over 30 global exchanges and trading firms. Additionally, complex order types (TWAP, VWAP) and price data streams for the top 300 tokens are offered.
- OTC Block Trading: Stillman Digital processes an average trade size of $2 million+, offering a high-touch concierge service for large block trades. Trades are conducted via voice or chat, with manual trade confirmations handled by the back office. Acting as a global on/off ramp into the crypto markets, Stillman on-ramps US$40-80 million daily and processes over US$1 billion+ in monthly trade volumes.
- Market-Making: Stillman Digital provides liquidity to central limit order book products through strategic partnerships and exchanges, currently handling US$400 million in monthly volume and experiencing rapid growth.
Newly Licensed & Future Revenue Drivers2
- Institutional Focus: As part of its broader growth strategy, Stillman Digital will continue executing against its strategic development roadmap, focused on adding and deepening relationships with large corporate and institutional clients. By leveraging its existing blue-chip regulatory licenses, proprietary trading technology, and liquidity network, Stillman Digital is poised to realize additional growth and market share as part of the broader Defi Technologies ecosystem. DeFi’s platform will help unlock revenue synergies and economies of scale via its distribution channels, balance sheet, and marketing expertise.
- Custody: Stillman Digital offers secure storage solutions with advanced encryption, multi-signature technology, and insurance. Utilizing state-of-the-art encryption and multi-signature technology, Stillman provides maximum security, offering both cold storage for long-term asset preservation and warm wallet solutions for convenient access. Stillman Digital provides 24/7 monitoring and support to safeguard clients’ assets and implement rigorous compliance and regulatory standards to maintain trust and transparency. Revenue is generated through custody fees based on the volume and value of assets under management.
- Foreign Exchange: Stillman Digital plans to facilitate competitive currency exchange with access to a wide range of fiat and digital asset pairs. Using advanced trading algorithms and liquidity providers, they ensure optimal execution. Clients benefit from real-time market insights and analysis to make informed trading decisions and have access to customizable trading interfaces via Web Portal or API. Revenue is generated through spreads on currency pairs and trading volume.
- Proprietary Trading: Future balance sheet maximization will be achieved via market-neutral proprietary trading activities across various digital asset markets. Sophisticated trading strategies and risk management techniques are utilized to generate consistent returns on capital. Cutting-edge technology and data analytics are leveraged to identify profitable trading opportunities. Strict compliance and regulatory controls are implemented to mitigate risks and ensure adherence to applicable laws. Revenue is generated through trading profits.
Stillman Digital’s technology investment and client diversification are expected to continue delivering profitable growth. Its established onshore and offshore regulatory credibility and extensive network of banking relationships create a competitive moat, laying the foundation for continued success. Custody, Foreign Exchange, and Proprietary Trading services are anticipated to drive future revenue and further expand Stillman’s market presence.
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