The combined platform allows financial institutions of all sizes around the country to access liquidity by trading whole loans and participations in one place for the first time
Capstack Technologies Inc. (“Capstack”), the leading loan trading platform for financial institutions, today announced the acquisition of Edge Tradeworks Inc. (“Edge”), an institutional-grade whole loan-trading and bank analytics platform. Together, the two companies will offer a first-of-its-kind platform that brings whole loan and loan participation trading to financial institutions within a single investment ecosystem.
“Capstack’s acquisition of Edge is a significant step forward for capital markets liquidity and diversification”
For financial institutions, diversification, risk mitigation, and access to liquidity are more important than ever. By powering both participation and whole loan trading on one platform, Capstack and Edge have removed all constraints around size and transaction type, providing customers with a marketplace of unlimited opportunities to enhance liquidity and diversification. Capstack now has the highest volume of buyers, sellers and transactions on its platform, offering transparent collaboration and seamless transactions between financial institutions.
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“Nothing currently exists that brings both sides of this market together, so we saw a huge opportunity to change that and enhance liquidity for our customers,” said Capstack Founder and CEO, Michal Cieplinski. “By bringing participation and whole loan trading under one roof, we can provide significantly more liquidity and trading volume for both sides of the market.”
Backed by top fintech investors and the world’s largest banks, Capstack leads the way in powering transactions and collaboration between financial institutions by offering a simple, secure and efficient platform for trading participation loans. Edge has served regional and national banks and non-bank financial institutions, including credit funds and credit unions. Their platform uses data analytics tools to allow customers to compare their loan portfolio composition against other institutions and regulatory requirements and then identify buyers and sellers to trade with.
With the acquisition, all types of financial institutions can now access trading opportunities that they wouldn’t previously have had access to. Edge was founded by John Roberts and Hughie Choe, who will join the Capstack leadership team alongside CTO Alex Dorsch. The combined platform already has several hundred million dollars in transaction volume.
“Historically, financial institutions haven’t been able to easily access the trading opportunities that best suit their liquidity needs,” said Edge Co-Founder and CEO, John Roberts. “Capstack offers customers an unparalleled level of liquidity and ability to manage risk from within their loan portfolio, where the bulk of the risk lies.”
In March 2024, Capstack announced a strategic investment from Citi Ventures, the formation of a high-profile advisory board, and the growth of its leadership team with the addition of David McArdle as Head of Banking Relationships and Randy Riffle as Head of Customer & Platform Operations. The acquisition of Edge is a significant milestone for Capstack and reflects a new phase of growth for the company.
“Capstack’s acquisition of Edge is a significant step forward for capital markets liquidity and diversification,” said Logan Allin, Founder and Managing Partner at Fin Capital. “A single platform providing access to both of these critical loan and deposit markets in one place, is a step function improvement to the way that financial institutions of all sizes approach loan trading and collaboration. The combination is a testament to how Michal and the Capstack team are scaling technology that truly helps institutions unlock new paradigms.”
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