Blockchain-based payments firm Roxe Holding said Tuesday it has entered into an agreement to merge with blank check company Goldenstone Acquisition in an estimated combined enterprise deal worth $3.6 billion.
The merger, following approval by Roxe’s and Goldenstone’s shareholders, will result in Roxe becoming a publicly-traded company on the Nasdaq Stock Market, according to a statement.
Special purpose acquisition companies (SPAC), or “blank check” companies, are entities with no commercial operations that obtain an initial public offering for the purpose of merging with private companies to take them public.
A merger of this size continues to fly in the face of a declining crypto market and waning interest from investors over a lack of returns generated by these types of vehicles.
Still, many SPAC deals including Circle’s intentions to go public with a $9 billion enterprise valuation, announced in February, offer a real shot for blockchain and crypto firms seeking a listing on major traditional exchanges.
Goldenstone will be renamed to “Roxe Holding Group Inc” where it is expected Roxe stockholders will roll 100% of their equity into the combined company.
Roxe is a blockchain infrastructure company whose blockchain is based on a permissioned hybrid model supporting a range of assets including digital fiat, central bank digital currency, stablecoins, gift cards, gaming tokens, loyalty points and stocks, according to its website.
Because of the permissioned model, Roxe does not interact with existing cryptocurrencies like bitcoin or ether and instead issues its own private tokens to facilitate money transfers and remittances across 113 countries.
“Roxe is a leading blockchain-based open payments network and we strongly believe in the … opportunity for blockchain to transform payments,” Goldenstone’s CEO Eddie Ni said in the statement. “We believe that Roxe’s adherence to a compliant, robust strategy will make it a winner in this track.”
The deal is expected to close in the first quarter of next year.