On Friday, December 21, it was reported that two blockchain companies, CoinVantage and Picks & Shovels, the latter producing tools for crypto space investors, are merging into a new company dubbed Interchange.
The new entity will have only eight staff members and it will be producing software for more than 100 customers, among which will be fund administrators, crypto exchanges and crypto management funds.
A new profitable field
The new company intends to produce systems for front and back offices for companies managing virtual assets. This may seem less exciting than other directions of the crypto business — however, it has the potential for large profits, since more and more institutional investors are entering the crypto industry.
Before the merger, CoinVantage was a subsidiary of MG Stover, a crypto management firm that was one of the first companies to enter this business and began servicing crypto management funds four years ago. CoinVantage started work in November, slightly over a year ago from now.
The new company
The CEO of MG Stover, Matt Stover, believes that joining forces with Picks & Shovels will enable the two firms to combine their knowledge and skills to offer a new remarkable product for the market.
The details of the deal regarding the sums of money exchanged have not been disclosed. Stover will become a member of the Interchange board, still remaining the CEO of MG Stover. The offices of the new startup are located in NYC, San Francisco and Denver. Currently, they are busy hiring IT pros.