Bitwave, the leading developer of financial software in San Francisco, California, has revealed plans to acquire Gilded at an undisclosed amount. In a blog post, the Bitwave team announced that the mergers and acquisition (M&A) aims at strengthening enterprise solutions, including crypto payments and other invoicing features.
With the significant development of the financial sector, Gilded has emerged as Bitwave’s top competitor in payment and accounting services.
Bitwave Acquires Gilded
The exemplary market performance of Gilded inspired Bitwave to engage in negotiations to acquire the financial provider. According to Bitwave, acquiring Gilded will enable the firm to improve its tax tracking and bookkeeping practices.
Under the M&A deal, the Bitwave team seeks to implement new talent management techniques to onboard the Gilded team. Led by the chief technology officer and founder of Gilded, Ken Gaulter is expected to join the Bitwave engineering team.
In a wide-ranging interview with Bitwave’s chief executive officer, Pat White acknowledged that crypto payments are cheaper and more effective compared to conventional payments methods. The CEO explained the significance of digital asset payment in a “hyperconnected” economy. White confessed that acquiring Gilded will be a game changer for Bitwave to improve its business performance.
Advantage of Crypto Payments
Even though the CEO failed to disclose the actual acquisition amount, he is optimistic that the M&A deal will be beneficial for both companies. He anticipates that crypto payment will play a critical part in the growth of the financial sector in the future.
White lauded that the crypto payments support instant settlements at low gas fees. The CEO admitted to having seen the popularity of crypto payment surging in the past few years. He stated that lately, financial institutions have discovered the endless benefits provided by crypto-related payment.
Interestingly, the acquisition deal came when the US financial regulator introduced new rules on digital assets accounting and taxation to address “poor optics” that affect crypto firms. A submission issued by the Financial Accounting Standards Board (FASB) underlined the procedure for computing the fair value of their digital assets on their respective financial reports.
Commenting on the FASB rules, White was pleased to announce that the new guidelines provide clarity to crypto taxing and accounting. In a review of the crypto taxation system, the CEO recognized the exemplary work done by the revenue regulator, the International Revenue Service (IRS).
He stated that the IRS has recently provided a clear procedure to compute the taxes for staking rewards. In the recent provision, the IRS portrayed a clear definition of a broker and the regulatory requirement of filling out the 1099-DA form.
Gilded Customers to Migrate to Bitwave
White admitted that the financial and market regulators have invested heavily in improving transparency on digital assets. However, with the amendment of the laws, the regulators will be required to administer the operation of token issuers and exchange more keenly.
Remarkably, the efforts made by the regulators to redefine the crypto ecosystem have inspired Bitwave to pursue M&A deals to cement the company’s foray into the digital space. In April, Bitwave acquired Multisig Media, aiming at promoting innovation and strengthening its position in enterprise solutions.
Elsewhere, the chief executive of Gilded Gil Hilderbrand argued that as the pursuit for regulatory oversight heightens, it was important for crypto firms to expand their financial operations.
The Gilded boss was delighted to partner with Bitwave to deliver a first-world solution for the crypto industry. He admitted that as the crypto industry evolves, the Bitwave financial stack will gain a competitive advantage.
Notably, Bitwave provides the best financial stack that blends well with the ever-changing needs of the Web3 sector. With the acquisition, the Gilded customers will be allowed to explore the services and products offered by Bitwave.
But, the M&A deal allows the Gilded product to be available to the end users. The Bitwave team vowed to promote the customers’ experience by prioritizing the customers’ needs.
In addition, the Bitwave team pledged to come up with a practical procedure that supports a smooth transition of the Gilded users into Bitwave. During the expected transition to the Bitwave ecosystem, the partners agreed to work closely to ensure uninterrupted business. In the latter the financial institution will update the Gilded user on the appropriate procedure that will be used in the impending migration to Bitwave.