CrossTower, the global crypto currency trading platform with an office in Bermuda, has agreed to acquire Bequant, a leading prime brokerage and digital asset exchange, for an undisclosed amount.

The organisation also announced the launch of the first ESG crypto fund, in partnership with the Lydian Group, to invest in and rebuild companies that have promising futures.

Bequant, with its institutional trading and prime brokerage platform, will enable CrossTower to expand its suite of professional grade products for a global market, covering Bermuda, the United States, Europe, Latin America, and Asia, the company said.

The acquisition adds more than 600 professional exchange clients, generating more than $400 billion of yearly turnover with more than a dozen exchanges connected to its platform.

The crypto fund will invest in companies focused on each of the components of ESG.

A spokesperson said: “The industry must become smarter at managing energy costs, given the reduced asset pricing and the overall cost of energy.

“The industry image has been tarnished by a few players' greed. We need to put the people and the democratisation of finance back into the centre of what makes crypto important.”

He added: “The biggest failure of the companies in trouble today has been the human failure. There needs to be proper governance – a proper board structure; related party checks and balances; and traditional business expertise. Crypto companies need to change to recreate value.”

CrossTower said the transaction had been backed by the Lydian Group, founded by tech industry veterans Gerard Lopez, co-founder of Mangrove Capital and global tech investor, and Greg Fishman, tech entrepreneur and software architect in AI technology.

It said that the Lydian Group leadership and board included Chris Davis, chief marketing officer and senior vice-president of New Balance; Lars Fjeldsoe-Nielsen, founder of 2xN and former general partner of Balderton Capital; Gavin Patterson, president and chief strategy officer of Salesforce and former British Telecom CEO; Mark Tluszcz, co-founder of Mangrove Capital Partners and chairman of Wix.com; and Alex Zubillaga, founder of 14W Capital, formerly an executive at Warner Music Group, and adviser to Spotify.

CrossTower said that through this acquisition it would become a focal point for the industry reset and consolidation, using its newly launched fund.

Kapil Rathi, CEO of CrossTower, said: "We are stabilising an industry with incredible promise; regaining trust; and rebuilding the future of finance. Rebuilding requires capital and a management team with regulatory and operational expertise.

“With the launch of our fund and the Bequant acquisition, we are positioning CrossTower to lead the growth of this industry, with proper regulatory oversight, integrity, and accountability.”