On Tuesday, Cobalt, a United Fintech-owned company, announced a rebranding and relaunching of its services as CobaltFX to concentrate its focus only on the foreign exchange (FX) market.
CobaltFX to Entirely Focus on FX Services
"CobaltFX's goal is to re-engineer the world of Foreign Exchange through a rock-solid platform focusing on credit optimization and post-trade FX. Dynamic Credit being the most important starting point," said the Founder of CobaltFX (previously Cobalt), Andrew Coyne, who is now a part of United Fintech.
United Fintech acquired CobaltFX entirely last December from the previous owners, which included Citibank, Standard Chartered Bank, S&P Global, and Singapore Exchange. It was the fifth acquisition of Christian Frahm's venture, which aims to acquire and accelerate fintech startups.
Though CobaltFX operates independently following the acquisition, its clients have been migrated onto the United Fintech platform.
"As part of United Fintech, we join four other partner companies, retaining our formal status as a partner company," Coyne added. "There are a lot of synergies between the partner companies and United Fintech. Not only from a client and solution perspective, but from a visionary perspective; together, we're stronger than ever."
In addition, Coyne highlighted the importance of the change of ownership as it removed "administrative distractions" and strengthened global distribution, sales, and marketing.
New Digital Asset Venture
The strategic business move of CobaltFX will temporarily put the digital asset service of the company outside its product offering. The company will spin off its digital asset division by forming a new venture in Q2, details of which will be provided later.
"We believe both opportunities are huge and should be pursued, but not under the same banner," said Marc Levin, the Group COO of United Fintech, who also took over as the CEO of CobaltFX.
"While FX and DA are similar in many ways, and likely to merge in the future, the two industries are currently at very different maturity stages of their evolution, largely operating independently and therefore requiring different approaches to be successful on their own. Hence the spin-off of Cobalt's DA product as part of a bigger United Fintech play in this area; we're very excited to announce this later in Q2."
On top of that, the latest relaunch as CobaltFX brought in some major management shuffles. As a part of the move, the former Managing Director at Cobalt, Darren Coote, will take a bigger role in United Fintech; United Fintech's Head of Strategic Transformation and Execution, Elizabeth Missfeld, will become the COO of CobaltFX; and Erik Nordahl, a Partner and the Group CTO at United Fintech, took up the charges as the CTO.
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