Damex sells retail arm to UK crypto banking app Ziglu

Local crypto company Damex has sold its retail division to UK-based banking app Ziglu.

The sale will see Damex’s retail customers in the EU and UK migrated to the Ziglu app, which offers a platform for managing both traditional and digital assets.

Damex has announced the sale on Monday amid Gibraltar Finance Week, with the acquisition set to fast-track Ziglu’s plans

CEO of Damex Sam Buxton told the Chronicle the deal is a very positive move for the business which will continue to focus on their B2B services.

Mr Buxton described how the retail sector had been challenging and resource-intensive for Damex.

He added that Damex will receive equity in Ziglu for the sale of their retail arm comprising of around 60,000 users.

He added that he is optimistic about the transition and commended Ziglu’s leadership team, including Mark Hipperson, the ex-Starling Bank founder, and Sarah King, Damex’s former Chief People Officer, who played a crucial role in the deal.

“We are excited to have Damex’s retail business partner with Ziglu, a company recognised for its robust regulatory standing and innovative product offerings,” Mr Buxton said.

“This collaboration will enhance the range of financial services available to our customers. Additionally, it will create a new listing opportunity for the Damex Token and allow Damex to focus on its core B2B services.”

As part of the acquisition, Caroline Cerisola, Damex’s Managing Director of Retail, will join Ziglu to help drive expansion in the EU and Gibraltar.

The Damex Token will also be integrated into the Ziglu app with tailored utility features.

“The deal reflects a strategic shift towards Damex's strengths in digital assets and fiat services for businesses, while ensuring a positive outcome for retail customers and shareholders,” a statement from Damex said.

For Ziglu, the acquisition means Damex customers will gain access to their products including trading cryptocurrency, earning yield via its ‘Boost’ products, and moving and spending money, locally and internationally, without fees.

In addition to its existing proposition, Ziglu will soon introduce UK and US stock trading and investment services for European customers.

“Ziglu and Damex both embody a common goal, to democratise finance for an EU-wide customer base and reduce the barriers to entry for a new generation of investors,” Founder of Ziglu, Mark Hipperson said.

“We are excited to collaborate with Damex on extending our capabilities to customers across the EU.”

The acquisition of Damex Retail will accelerate Ziglu’s vision of becoming a leading pan-European financial platform.

“By integrating Damex’s business with our ecosystem, we can deliver greater value, flexibility, and opportunities for our customers across multiple markets,” Mr Hipperson said.

He added that UK financial regulation has become even more challenging since Ziglu’s launch.

“We recognise that the bar for financial institutions is just as high in Europe,” Mr Hipperson said.

“Ziglu is proud of its regulatory heritage and plans to blaze a trail in the EU, as it did in becoming (and remaining) one of the very few businesses in the UK licensed to provide e-money, crypto and (soon) investment services to personal customers.”