Clear Junction, a world leader in cross-border payment solutions for regulated institutions, has today announced the acquisition of Altalix, a UK-based fintech firm providing fiat-to-crypto gateway solutions.
Altalix was one of the first UK companies to become registered with the FCA as a cryptoassets firm, accomplished as part of the FCA Regulatory Sandbox programme and with the support of the FCA Innovation Hub. With its compliance-first approach and existing client relationship with the team at Altalix, this acquisition was an ideal proposition for Clear Junction.
This strategic acquisition marks a major milestone in Clear Junction’s growth journey as it works towards becoming a one-stop shop for its customers to manage their payment and treasury needs globally.
As the digital asset market expands, the number of cryptocurrency users is forecast to reach 994.30 million by 2027, with the cryptocurrency market’s revenue expected to grow by 14.40 percent annually, reaching US$64.87 billion by 2027. This growing market offers a great opportunity for emerging fintech companies like Clear Junction, which don’t currently specialize in this sector.
In June 2023, the Law Commission released its final report to the UK Government which suggested that the common law system in England and Wales is well-placed to provide a coherent and globally relevant regime for existing and emerging types of digital assets. In addition, HMRC’s statement that digital assets such as cryptoassets are taxable since they are not considered currency, cash or gambling, demonstrates the inevitable growth of the digital asset market and the need for a roster of fintech and payment companies able to accommodate it. The Prime Minister has also expressed the UK’s ambition to become a world hub for digital assets in the future.
Clear Junction has stated its intention to not trade in digital assets or become an exchange, but it has taken into account market sentiment, the progressive approach of the UK, and the needs of its clients. It believes that, in order to remain competitive in the payment space in the long run, it must be able to offer both fiat and digital services to its customers in the future.
Dima Kats, CEO of Clear Junction, commented: “It has been a pleasure to work with the management team at Altalix, and the wider team while they were a Clear Junction client. We are excited to take this business forward. As part of the acquisition process, Clear Junction was required to undergo a rigorous change in control process with the FCA. Not only have we gained a true competitive edge with the unique pairing of cryptoasset registration and EMI licence issued by the FCA, but the acquisition also holds significance as we look to the future of finance and how the industry will develop. We closely follow the regulatory developments related to digital assets in the UK, and so it is imperative for us to expand our expertise and product offerings in line with the market trends and our vision to provide correspondent account services to regulated institutions.”
Altalix will remain a separate company and will be rebranded to Clear Junction Digital Ltd. However, its business strategy will shift from serving retail customers to solely providing services for regulated institutions in line with Clear Junction’s market focus.
Dima continued: “Clear Junction has always seen compliance as a cornerstone to our business, and we are confident that this acquisition is an investment into our capabilities and stability of service to our clients with a solid infrastructure for offering products that fit the purpose of the future of digital assets. We will spend some time in Q4 bedding in the new business, updating policies and processes (to ensure they are in line with our high standards), and developing pilot products for launch.”
The news of the acquisition follows the launch of CJClique in June – Clear Junction’s new platform enabling its digital asset customers to connect and collaborate – and comes just days after it announced its ISO 27001 certification, the highest global standard that companies can achieve for information security.
Founded in 2016, Clear Junction’s proprietary technology enables fast and secure access to payment accounts, e-money accounts, digital IBANs and treasury services for regulated institutions. By partnering with Clear Junction, clients can reduce the time to market they usually face when establishing banking relationships, access new markets, and leverage cutting-edge technologies and expertise.
