The crypto-payment startup Wyre acquired the firm Hedgy, engaged in the development of smart contracts for bitcoin blockchain, for an undisclosed sum. This is written by CoinDesk.
According to the operating director and co-founder of Wyre Ioannis Giannaros, this transaction will allow his company to expand the range of services it provides to crypto-cash startups. Wyre develops cross-border payment solutions using Bitcoin, Ethereum, Litecoin and other cryptocurrencies, which act as a tool for calculating transactions.
The purchase of a smart contract platform will enable Wyre to expand its financial ecosystem by providing customers with access to forward contracts, swaps and much more, Giannaros said.
Wyre plans to take advantage of the “navigation” benefits of Hedgy in the regulatory environment, he said, adding:
“This is a really highly regulated area, and in this sense Hedgy is well ahead of its time. They made derivatives on smart contracts, when Ethereum did not exist yet.”
Hedgy focuses on hedging commercial risks. Companies that use smart contracts or otherwise use cryptocurrency to reduce their transaction costs due to a blockchain can use derivatives to essentially fix the price of assets during the transaction, explains Wyre in the Medium blog.
“In the bitcoin world, the volatility characterized by the market attracts the attention of retail speculators, investors and professional traders. Over time, volatility will decrease (which may not happen so soon). When markets become less volatile, demand for creative financial products, such as options and futures, will increase,” Wyre writes.