OSL Group Acquires Banxa for CAD 85.2 Million, Expanding Crypto Reach

OSL Group Limited, a Hong Kong-listed fintech entity, announced plans to acquire Banxa Holdings Inc. for CAD 85.2 million, fully paid in cash. This agreement, involving a combination of shares, options, and warrants, aims to advance regulated digital asset services internationally. OSL’s CEO, Cui Song, spearheaded this move, emphasizing its strategic goal for broader compliance and infrastructure enhancement. Banxa Holdings, based in Canada, specializes in crypto payment infrastructure and is noted for its robust operational presence in key markets such as Europe, North America, and Australia. This merger is poised to potentially impact industries reliant on fiat-to-crypto exchanges, enhancing operational efficiency and regulatory adherence.

“The Board is pleased to announce that on 27 June 2025 (after trading hours) (Hong Kong time), the Company, the Purchaser and Banxa entered into the Arrangement Agreement.” – Cui Song, Executive Director and CEO, OSL Group Limited

The acquisition promises significant benefits for liquidity providers and exchanges utilizing Banxa’s infrastructure. Although no immediate changes in tokenomics or on-chain assets like ETH and BTC are apparent, the long-term effects may resonate through improved compliance and global reach, particularly enhancing institutional participation in crypto. Financially, the acquisition involves a mutual termination fee of CAD 4.25 million should parties fail to complete the transaction. This aligns with the broader trend of fintech firms acquiring crypto infrastructure companies to solidify cross-border operations. Additionally, regulatory and shareholder approvals in Hong Kong and Canada are prerequisites for this acquisition, ensuring compliance across jurisdictions. While public reactions from key opinion leaders like CZ or Vitalik Buterin are absent, the deal reflects a growing momentum for consolidation within the crypto industry. The involvement of numerous investment entities, including NGC Ventures and Thorney Investment Group Australia, highlights the financial community’s interest in bolstering regulated crypto service networks. This acquisition further underscores the fintech industry’s continued focus on expanding its capabilities within the regulatory frameworks of multiple regions.