Clear Junction, a global leader in cross-border payments solutions for regulated institutions, has today announced the acquisition of Altalix, a UK-based fintech company providing fiat-to-crypto gateway solutions.
Altalix was one of the first UK businesses to become registered with the FCA as a cryptoassets firm, achieved as part of the FCA Regulatory Sandbox programme and with the backing of the FCA Innovation Hub. Altalix's reputation with the FCA, along with its compliance first approach made this an appealing proposition for Clear Junction and having previously had a client relationship with the team at Altalix they were able to work collaboratively on this deal and the next phase of growth for both firms.
This strategic acquisition represents a significant milestone in Clear Junction’s growth journey as it works towards becoming a one-stop shop for its clients to manage their payment and treasury needs globally.
The digital asset market is increasing rapidly, with the number of cryptocurrency users predicted to reach 994.30m by 2027, and revenue in the cryptocurrencies market expected to grow by 14.40% annually, reaching US$64.87bn by 2027. This expanding market presents a favourable prospect for growing fintech companies like Clear Junction who do not currently focus on this sector.
Notably, in June 2023, the Law Commission published its final report to the UK Government which advised 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, given HMRC’s declaration that digital assets such as cryptoassets are taxable since they are not considered currency, money or gambling, it is clear that the inevitable growth of the digital asset market will require a roster of fintech and payments companies capable of accommodating its growth and evolution. Even the Prime Minister sees the UK becoming a global hub for digital assets in the future.
Clear Junction has confirmed that it does not have ambitions to trade in digital assets or become an exchange, but, prior to the acquisition of Altalix, it has taken into consideration market sentiment, the progressive approach by the UK, and the needs of its clients’ . It therefore believes that, in order to remain competitive in the payments space in the long term, it needs to position itself to be able to offer both fiat and digital services to its clients 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 undertake 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.”
Moving forward, Altalix, will remain a separate company and will be rebranded to Clear Junction Digital Ltd. Its business strategy, however, will shift from serving retail clients to exclusively 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 clients to connect and collaborate - and comes just days after it announced its ISO 27001 certification, the highest global standard that businesses can achieve for information security.
Established in 2016, Clear Junction’s proprietary technology enables the quick and safe access to payment accounts, e-money accounts, virtual IBANs and treasury services for regulated institutions. By working with Clear Junction, clients can shorten the time to market they typically face when establishing banking relationships, access new markets, and tap into game-changing technologies and expertise.