IG Defies Market Skepticism with $117M Asia-Pacific Crypto Bet

IG Group Holdings Plc (LSE:IGG), a UK-based online trading platform, has agreed to acquire a majority stake in Australian cryptocurrency exchange Independent Reserve for an initial enterprise value of A$178 million ($117.4 million), marking its strategic expansion into the Asia-Pacific crypto market title1^[1]. The transaction, subject to regulatory approvals from Singapore’s Monetary Authority of Singapore (MAS) and Australia’s Foreign Investment Review Board (FIRB), is expected to close in early 2026 title2^[2]. Under the terms of the deal, IG will initially acquire 70% of Independent Reserve for A$109.6 million, with an additional A$15 million contingent on the exchange’s performance in fiscal year 2026. The remaining 30% stake includes a call option for IG to acquire it based on performance metrics in fiscal years 2027 and 2028 title3^[3].

The acquisition aligns with IG’s broader strategy to strengthen its presence in the fast-growing crypto markets of the Asia-Pacific region. Independent Reserve, one of Australia’s largest and fastest-growing regulated crypto platforms, supports trading in 34 cryptocurrencies across Australia and Singapore. Its revenue surged 88% year-over-year to A$35.3 million ($23.3 million) for the fiscal year ending June 2025, driven by a 60% increase in monthly active users to 11,600 and A$9.9 million in EBITDA title4^[4]. The platform also manages $1.12 billion in assets under custody from 129,400 funded accounts, reflecting its established regulatory compliance and technological infrastructure title5^[5].

Matt Macklin, Managing Director for Asia Pacific and the Middle East at IG, emphasized that the deal fills a regional product gap for the firm, providing “immediate access” to Australia and Singapore while complementing its recent crypto rollouts in the UK and U.S. Independent Reserve’s leadership team and employees will retain a collective 30% shareholding post-transaction, ensuring continuity in operations. The company also plans to retain the Independent Reserve brand and integrate its offerings into IG’s trading platforms in the region title6^[6].

Regulatory compliance remains a key focus for both parties. IG stated the deal is expected to be accretive to cash earnings per share in the first full financial year post-closure (FY27) and achieve a return on invested capital exceeding the group’s weighted average cost of capital between FY29 and FY31 title7^[7]. Adrian Przelozny, CEO of Independent Reserve, highlighted that the partnership with IG provides a “bigger platform to grow” while maintaining its commitment to secure, regulated trading. The exchange’s management will continue to oversee day-to-day operations, with IG retaining the flexibility to expand its crypto product suite across Asia-Pacific and the Middle East title8^[8].

The transaction underscores IG’s aggressive expansion in the crypto sector, following its June 2025 launch of spot crypto trading in the UK and U.S. The UK offering, a partnership with Uphold, allows retail investors to trade 35 cryptocurrencies, while the U.S. arm, tastytrade, expanded its product range to 23 coins and introduced stablecoin account funding. These moves align with broader industry trends of institutional and retail adoption, as well as regulatory scrutiny intensifying in jurisdictions like the UK, where new rules will require crypto firms to report detailed customer transaction data starting in 2026 title9^[9].

IG’s shares fell 1.8% in trading following the announcement, reflecting market skepticism about the deal’s long-term profitability. However, analysts note that the acquisition’s accretive potential and strategic alignment with regional growth opportunities could offset short-term volatility. The press release also revealed that IG’s share buyback program, worth up to €125 million, remains active until January 2026, signaling confidence in capital allocation title10^[10].