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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

Insights

Week of December 30 – January 5

Todd White
January 8, 2025
DOWNLOAD FULL REPORT

December 30 – January 5 (Published January 8th)

 

PERSPECTIVES by Todd White

 

11 Crypto Private Financings Raised: $42.2M

Rolling 3-Month-Average: $194M

Rolling 52-Week Average: $204M

 

The convergence of crypto and digital assets into traditional finance has been gaining momentum for some time. Initially conceived as an alternative to traditional finance, the evolving story of digital assets now seems more likely to be one of integration rather than disruption or displacement. We’ve seen this play out in multiple areas, from brokerages such as Robinhood and Interactive Brokers offering crypto trading, to the growing momentum of BTC and ETH ETFs, the increasing tokenization of other real-world assets, and the potential integration of stablecoins into payment and remittance systems. As crypto gains acceptance as a legitimate asset class, we’ve even heard calls for allocations to bitcoin and crypto within sovereign reserves and individual investment portfolios.

 

Yet from a capital markets perspective, the paths to raising capital have remained somewhat distinct, with companies and entrepreneurs using either traditional instruments or token offerings to raise funds. Investor support for efforts to combine the two worlds through security token offerings has underwhelmed.

 

Fold, Inc., a bitcoin-focused financial services company, may be breaking that trend. Founded in 2019 as a place to exchange unwanted gift cards for bitcoin, Fold has now evolved to offer broader financial services, including a bitcoin cash-back debit card, merchant rewards, and consumer bill payment rewards, all coupled with insured custody and no-fee trading. In many ways, Fold’s business model demonstrates the convergence of crypto with the traditional.

 

On December 30, Fold announced a convertible bond financing that may be expanding the realm of that convergence. The deal includes a $20 million convertible bond from ATW Partners, with a potential $10 million increase pending Fold’s planned listing and entry into public capital markets through its announced combination with FTAC Emerald Acquisition Corp. The convertible notes are secured by Fold’s assets, including a portion of the company’s proprietary bitcoin holdings.

 

While other companies such as MicroStrategy and Marathon Digital Holdings have issued convertible notes to fund bitcoin purchases, Fold’s use of digital assets as collateral represents a novel approach in traditional debt financing structures. This kind of innovation to meet capital needs could prove fruitful for others holding significant amounts of digital assets on their balance sheets, as the lines between the traditional and the digital continue to blur.

 

Contact ryan@architectpartners.com to schedule a meeting.