Fintech and AI company, Currenc, has entered into a non-binding term sheet with Animoca Brands to acquire 100% of the company via a reverse merger. If completed, the combined entity would be listed on the Nasdaq Stock Market, the company said in a press release. The new entity promises to offer a global growth strategy spanning digital asset investments and services, real-world asset (RWA) tokenization, and blockchain applications for both consumers and institutions.
Under the proposed structure, Animoca Brands shareholders would own about 95% of the issued shares post-transaction, and Currenc shareholders about 5%. That being said the resulting company is expected to operate under the Animoca Brands. The deal is likely to conclude by 2026, subject to shareholder and regulatory approvals and other customary conditions.
Why more crypto firms are choosing the reverse merger route?
The reverse merger structure allows Animoca Brands to access U.S. public markets (via Nasdaq) without a traditional IPO. This will speed up the listing process and potentially reduce some costs associated with. In the broader crypto and tech space, companies have used similar approaches in the recent past in order to access public money.
For example, Tron, led by Justin Sun, is pursuing a reverse merger with SRM Entertainment, a publicly traded company. Post this announcement, TRX token surged 10% and the company’s valuation rose to an estimated $210 million. Similarly, Gryphon, a publicly traded Bitcoin miner, approved a stock-for-stock reverse merger with American Bitcoin, a mining firm linked to the Trump family.
Building on synergies between Animoca Brands and Currenc Group
“This proposed transaction provides a compelling path forward for the evolution of both companies and would unlock significant value for our shareholders. We are excited to facilitate this evolution, which will give our investors ownership in a global leader at the forefront of the digital asset economy,” said Alex Kong, Founder, CEO, and Executive Chairman of Currenc Group.
Yat Siu, Co-founder and Executive Chairman of Animoca Brands said, “We believe that this proposed transaction would usher in a new asset class that should position investors at the forefront of one of the greatest opportunities of our generation.”
Animoca Brands is a Hong Kong-based blockchain and digital-asset company, known for its investments in more than 600 companies globally across gaming, DeFi, NFT, real-world asset (RWA) tokenization, and infrastructure. Whereas, Currenc Group is a fintech firm providing AI-powered solutions to financial institutions, global remittance and digital payment services. In 2024 it processed more than $5.4 billion in transactions across 13 million cross-border flows.