Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF) completed its deal to invest in Greengage Global Holding Ltd, which aims to become the first merchant bank for the digital finance sector.
Through the Seedcoin subsidiary, Coinsilium invested £200,000 via convertible notes and acquired £300,000 of Greengage shares, with the equity deal valuing the investee at £27.3mln.
Together the companies intend to explore opportunities to develop regulatory compliant decentralised finance (De-Fi) commercial products and solutions. Greengage is, meanwhile, engaged in the regulatory approval process for a banking licence in Gibraltar.
"We are delighted to announce this strategic investment in Greengage, which strengthens Coinsilium's position in the digital markets' space and supports Greengage in its mission to expand banking and lending opportunities to cryptocurrency and crypto-asset companies, and more broadly SMEs,” said executive chairman Malcolm Palle.
"The investment is also expected to lead to a close working relationship between both companies in Gibraltar as we seek to jointly explore potential solutions which aim to address some of the regulatory hurdles currently challenging broader DeFi adoption.
“Greengage's track record and ambitions within regulated markets, combined with Coinsilium's commercial and industry skills, positions us well for this endeavour and we are most excited by the opportunity."
Greengage chief executive Sean Kiernan added: "We are thrilled to have a further Gibraltar-based institution investing in Greengage.
“Our expansion demonstrates the growth of the jurisdiction as a thriving crypto-hub and a great place to invest, do business and grow. We look forward to exploring together the development of a suite of regulatory-compliant decentralised finance (DeFi) solutions."