Toronto-based DeFi Technologies Inc has signed a binding letter of intent to acquire Stillman Digital, including its Bermudian-based subsidiary, Stillman Digital Bermuda Ltd.

The island-based entity was granted a Class M digital-assets business licence by the Bermuda Monetary Authority on April 10.

Pursuant to the LOI, DeFi Technologies will acquire all issued and outstanding securities of Stillman Digital in return for 2.5 million common shares of DeFi Technologies, with one million of the payment shares subject to a lock-up schedule and released quarterly over a period of a year.

The parties said they intend to enter into a definitive agreement in respect of the acquisition by July 31.

Since its inception in 2021, DeFi said, Stillman Digital has facilitated more than $15 billion in trade volume, with $4 billion of that occurring in Q1 2024 alone.

It added that Stillman has cemented itself as the leader in over-the-counter on/off ramp trade flow, boasting a market share that places it at the forefront of America's OTC on/off ramp market.

DeFi said this acquisition enhances the company's trading capabilities, diversifies its client base, and stabilises revenue streams by integrating Stillman's expertise and market presence.

It said Stillman Digital Bermuda Ltd plans on expanding new and future business segments, including custody, foreign exchange and proprietary trading, which are expected to drive future growth, supported by their strong market position and technological investments.

Jonathon Milks, CEO of Stillman Digital, said: “Joining forces with DeFi Technologies marks an exciting new chapter for Stillman Digital. This partnership will enhance our ability to provide top-tier liquidity solutions and trading services, and together we can further bridge the gap between traditional finance and decentralised finance.

"We look forward to tapping into the DeFi Technologies executive team's expansive network in the web3 industry to fuel customer acquisition and profitable growth of the technological and regulatory infrastructure we have built at Stillman over the last four years."

Olivier Roussy Newton, CEO of DeFi Technologies, added: "The acquisition is a strategic step that not only expands our capabilities in the trading sector but also diversifies our client base and revenue streams.

"We are excited to integrate Stillman Digital's expertise into our operations and enhance our comprehensive suite of services."