Executive Summary

Online trading platform IG Group has acquired a 70% majority stake in Australian cryptocurrency exchange Independent Reserve for an initial A$109.6 million (£53.4 million). This strategic move aims to bolster IG Group's presence in the Asia-Pacific crypto markets. While IG Group's shares registered a decline post-announcement, market sentiment generally remains cautiously bullish, reflecting a broader trend towards institutional adoption and maturation within the digital asset sector.

The Event in Detail

IG Group's acquisition of Independent Reserve involves an initial payment of A$109.6 million (£53.4 million) for 70% ownership, excluding an expected A$8.4 million (£4.1 million) in acquired surplus cash. An additional A$15.0 million (£7.3 million) payment is contingent on Independent Reserve's performance in fiscal year 2026. IG Group also holds a call option to acquire the remaining 30% stake, with valuation based on performance in fiscal years 2027 and 2028, potentially bringing the total enterprise value of the acquisition to A$178.0 million (£86.8 million).

Independent Reserve, a regulated Australian crypto platform, provides trading services for 34 digital assets to approximately 129,400 funded accounts, managing $1.12 billion in assets under custody. For the 12 months ending June 30, 2025, Independent Reserve reported revenue of A$35.3 million (£17.7 million), an 88% increase from the previous fiscal year, and a 70% Compound Annual Growth Rate (CAGR) over the prior two years. EBITDA for the same period stood at A$9.9 million (£5.0 million). The acquisition price represents a multiple of 5.0x Independent Reserve's revenue for the specified period. The transaction is projected to be cash Earnings Per Share (EPS) accretive in the first full financial year post-closing (FY27) and is anticipated to achieve a return on invested capital exceeding IG Group's weighted average cost of capital within three to five years (FY29-31).

Matt Macklin, Managing Director of Asia Pacific & Middle East at IG Group, stated this acquisition "marks an important step in IG's crypto strategy in a key region." Adrian Przelozny, CEO and co-founder of Independent Reserve, noted that joining IG Group "provides us with the platform to accelerate our growth." The acquisition aligns with IG Group's existing organic expansion in cryptocurrency offerings, which include spot crypto trading in the UK with 35 coins and expanded services via its tastytrade platform in the US, offering 23 coins and stablecoin account funding. The leadership team and employees of Independent Reserve are expected to remain, retaining a 30% shareholding, and the brand will be integrated into IG Group's trading platforms in Australia and Singapore, following regulatory approvals from the Monetary Authority of Singapore (MAS) and the Foreign Investment Review Board (FIRB) in Australia, anticipated in early 2026.

Market Implications

The acquisition underscores a broader trend of consolidation and institutionalization within the regulated cryptocurrency exchange sector. IG Group's accelerated entry into the Asia-Pacific market signals potential for heightened competition and further development in the region's digital asset landscape. The transaction's reliance on regulatory approvals from Singapore and Australia highlights the increasing emphasis on compliance within large-scale crypto market operations. Increased participation from established financial entities such as IG Group is expected to contribute to greater liquidity and foster a more mature, regulated environment for cryptocurrency trading.

Expert Commentary

Matt Macklin, Managing Director of Asia Pacific & Middle East at IG Group, emphasized the strategic significance of the acquisition, citing Independent Reserve's "established regulatory foundations, proven technology and strong leadership." Adrian Przelozny, CEO of Independent Reserve, articulated that the integration with IG Group provides a robust platform to "accelerate our growth," aligning with their mission to deliver secure and regulated crypto trading services.

Broader Context

This acquisition by IG Group occurs amid a period of evolving regulatory frameworks and increasing corporate engagement with digital assets. The U.S. Securities and Exchange Commission (SEC) recently introduced new "generic listing standards" for crypto ETFs, designed to expedite the approval process from several months to under 75 days. This regulatory shift is anticipated to accelerate the launch of new crypto ETFs and attract further institutional investment into the digital asset space.

Simultaneously, publicly listed companies like SunCar Technology Group (NASDAQ: SDA) are actively pursuing direct investments in real-world asset (RWA) cryptocurrencies, with plans to allocate up to $10 million and integrate blockchain and RWA tokenization into their existing business models. These independent developments illustrate a wider trend of traditional finance and corporate entities diversifying into and integrating with the crypto economy, signifying a shift from purely speculative interest to strategic adoption and infrastructure development.