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Swyftx Acquires Caleb & Brown
Swyftx Acquires Caleb & Brown

Transaction Overview

On July 1st, 2025, Swyftx, one of the largest Australian cryptocurrency exchanges, announced a definitive agreement to acquire Caleb & Brown, a high-net-worth-focused crypto brokerage, for an undisclosed amount.

 

Target: Caleb & Brown

Caleb and Brown is a Melbourne-based, high net worth focused crypto brokerage that specializes in personalized trading services across the digital asset landscape. Caleb & Brown focuses on the relationship model used successfully across traditional  financial services – every client that comes onto their platform gets assigned a broker to assist them in executing trades  and handling all customer service needs. Caleb and Brown’s core services include 1) Brokerage Services, which provide personalized 24/7 trading support for 250+ digital assets, 2) an OTC Desk, which provides high volume trading solutions with deep liquidity and competitive pricing, 3) the Caleb and Brown Asset Management, an actively managed crypto asset fund for accredited investor, 4) crypto custody. 

 

The business has more than AUD $2 billion of digital assets under custody and was founded by Rupert Hackett and Dr. Prash Puspanathan in 2016. C&B is led by CEO Jackson Zeng and has 64 team members across both Australia and the US. Caleb & Brown has not raised any outside capital. 

 

Architect Partners’ Observations

Architect Partners acted as the exclusive financial advisor to Caleb & Brown. 

 

Swyftx’s acquisition of Caleb & Brown marks the largest acquisition targeting high net worth crypto investors. It also reflects two important shifts in the evolution of crypto exchanges, particularly within the ANZ region.

 

First, high-net-worth client service is becoming a strategic differentiator. Exchanges are beginning to recognize that personalized brokerage and deep client relationships offer a competitive advantage while greatly reducing attrition. This is a model that high-net-worth clients are accustomed to in their financial lives. Caleb & Brown’s approach, which assigns a dedicated broker to every client, stands apart from the high-volume, low-touch models that dominate the market. Swyftx gains access not only to clients but also to an established business model that emphasizes trust, service, and retention in a way few crypto exchanges have pursued.

 

Second, this is a milestone moment for ANZ crypto M&A. While there have been many plays for global expansion by exchanges, this is the first of its kind in Australia moving into the US, signaling that the region is entering a more active phase of market maturity. 

 

We believe this transaction will serve as a catalyst for further strategic activity to expand globally and to augment services as companies seek differentiation in both product and customer segments.

 

Strategic Rationale

Swyftx is acquiring Caleb & Brown to expand into the United States via C&B’s regulatory framework, and to acquire the relationship model inherently required with a higher-tier customer base. This acquisition will grant Swyftx entry into the U.S. 12 to 24 months faster than otherwise possible organically. Furthermore, the acquisition diversifies Swyftx’s primarily retail client base to include 25k+ high net worth individuals in numerous countries. 

 

“Caleb & Brown has quietly established one of the most impressive brokerage offerings in the world, with a heavily differentiated private client service. We see enormous growth potential.” – Jason Titman

Alerts

Robinhood Acquiring WonderFi for C$250M

John Kennick
May 15th, 2025
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Transaction Overview

On May 13th, 2025, Robinhood, a leading online brokerage platform, announced a definitive agreement to acquire WonderFi Technologies, a Canada-based owner and operator of several regulated cryptocurrency platforms. The deal is valued at C$250M (US$179M) and is expected to close in the second half of 2025.

 

Target: WonderFi Technologies

WonderFi, founded in 2021 and headquartered in Toronto, Canada, is a regulated digital asset platform that owns, operates, develops, and invests in blockchain-based financial products. The firm offers access to cryptocurrency trading, staking, and decentralized finance solutions for both retail and institutional clients. WonderFi’s core products include: 1) Bitbuy, a Canadian cryptocurrency trading platform offering trading, staking, and OTC services to advanced traders and corporate clients; 2) Coinsquare, a cryptocurrency trading platform catered more directly to retail investors; 3) SmartPay, a payment solution enabling businesses to accept crypto payments and convert them to fiat currency; and 4) WonderFi Labs, the company’s development arm focused on building future applications and expanding offerings, including Wonder, a layer 2 blockchain built on Ethereum, and WonderFiWallet, a non-custodial wallet that will connect to WonderL2.

 

Since 2021, WonderFi Technologies has raised a total of C$114.1M through both public offerings and private placements. WonderFi is 78% publicly owned, with Mogo Inc., the largest single active investor, owning 13% of the company.

 

Buyer: Robinhood

Robinhood, founded in 2013, is a publicly listed brokerage platform headquartered in Menlo Park, CA. The platform has grown from allowing individuals to trade stocks and ETFs to stock options, index options, futures contracts, and cryptocurrency. Robinhood also offers cash management services such as direct deposit capabilities and debit cards.

 

In 2018, Robinhood established Robinhood Crypto, which enabled users to trade various cryptocurrencies on the exchange. Since then, Robinhood has steadily increased the number of cryptocurrencies and stablecoins available for trading on its platform, both in the US and abroad, a goal made evident by its June 2024 acquisition of Bitstamp, a European crypto exchange, for $200M.

 

Robinhood currently has a $46B enterprise value, with $3.26B in trailing twelve-month revenue ended March 2025 (14.1× EV / Revenue multiple) and $1.35B in trailing twelve-month EBITDA (34.1× EV / EBITDA multiple).

 

Transaction Parameters

The acquisition will be an all-cash buyout valued at US$179M. Shareholders will receive C$0.36 per share, representing a 41% premium on WonderFi’s May 12 closing price and a 4.0x valuation/revenue multiple based on ~C$62.1M in revenue following FY 2024, and a 20.8x EBITDA multiple based on ~C$12M in FY 2024 Adjusted EBITDA.

 

Notable similar transactions include Coinbase | Deribit for $2.9B (M&A Alert),  Hidden Road | Ripple (M&A Alert), NinjaTrader | Kraken for $1.5B (M&A Alert), FairX | Coinbase (M&A Alert), and

Robinhood | Bitstamp for $200M (M&A Alert). 

 

Strategic Rationale

This transaction offers Robinhood entry into the Canadian cryptocurrency market by leveraging WonderFi’s established user base, regulatory licenses, and platforms such as Bitbuy and Coinsquare, which collectively hold C$2.1B in assets under custody. Additionally, Robinhood’s revenue streams will likely be bolstered and diversified by WonderFi’s growth in crypto trading volumes, which increased by 28% in FY 2024. Finally, the acquisition allows Robinhood to enhance its crypto offerings by gaining advanced infrastructure in staking and wallet services, supporting Robinhood’s goal of becoming a comprehensive financial services platform.

 

Architect Partners’ Observations

The move is part of a larger “growth via acquisition” strategy that we’re seeing larger players enact, partly due to increased cash generation over the past several quarters and regulatory optimism.

 

Robinhood has been farther on the risk spectrum for crypto trading and is cementing its lead against TradFi brokerages (several large players do not offer crypto trading yet). While crypto is being treated as just another asset to trade, the volatility and the lighter regulatory best-execution frameworks mean it can be a more profitable segment for trading firms.

 

For Robinhood, it not only gives access to Canada as a market but can also boost its “share of wallet.” They can cross-sell trading in other assets to WonderFi clients, further eroding competitors that are slow to react. The price of the deal is a bit low at 4X; but considering it’s an all-cash deal, the premium can quickly decrease. It is at a 71% premium over the 30 VWAP (volume-weighted average).

 

Firms approach consolidation on an account basis, and Robinhood is paying ~$105 per account (regardless of activity) or ~$1,400 per active account. Coinbase, based on 2024 numbers, is roughly $550 per active account. So, considering lifetime value, this is a reasonable deal for Robinhood.

 

Stepping back and widening the aperture, we see larger players continuing to look for consolidation opportunities. Even though Coinbase, Kraken, and Robinhood have recently announced acquisitions, we feel there are more consolidation plays to come this year.

 

Sources

Robinhood Press Release, WonderFi, WonderFi Investor Deck,  2024 Q4 Report, Pitchbook, Factset