Bitwave announced the acquisition of Gilded to enhance accounting and enterprise solutions amid improving accounting and tax clarity in the United States.
Crypto winter keeps sparking consolidation among crypto firms. The latest deal in the industry is the acquisition of payments and accounting platform Gilded by one of its competitors, Bitwave.
According to a statement shared with Cointelegraph, the acquisition is expected to enhance Bitwave's enterprise solutions, including crypto payments and invoicing features, as well as tools for tax tracking and bookkeeping. The integration will also see Ken Gaulter, chief technology officer of Gilded, join Bitwave's engineering team. This deal comes just a few months after Bitwaveacquired Multisig Media.
"We see digital asset payments as faster and cheaper than traditional payment rails — and in this hyper-connected economy, we expect that to be a game changer for businesses,” Pat White, Bitwave co-founder and CEO, told Cointelegraph. The companies did not disclose the acquisition price.
Gilded was founded in 2018 by a group of developers and accountants. It was founded on the premise of helping companies integrate crypto solutions into their financial reporting and accounting processes.
According to Gilded Crunchbase's profile, it has over 130 enterprise customers across crypto startups, nonfungible tokens (NFTs) marketplaces, decentralized autonomous organizations (DAOs), miners and accounting firms. Gilded's client base will continue to use its existing products while also being introduced to Bitwave's platform.
Bitwave, also founded in 2018, similarly offers crypto accounting and compliance services. The company closed a $15 million Series A in December 2022 to expand its crypto solutions to meet complex accounting requirements for enterprises. Hack VC and Blockchain Capital led the round. In addition, Bitwave recently announced a partnership with big four accounting firm Deloitte to offer enterprise tools, such as connecting blockchain data to ERP systems.
Deloitte is thrilled to announce a groundbreaking alliance with @BitwavePlatform to help organizations managing the complexities of digital assets #blockchain #crypto #DeloitteBDA https://t.co/Sf1fxrkXdQ pic.twitter.com/RisEj3VisG— Deloitte US (@DeloitteUS) September 12, 2023
"We believe that crypto payments are the future. With instant settlement and incredibly low fees, financial institutions are starting to recognize the massive opportunity afforded by this technology,” added White.
The deal came shortly after U.S. regulators unveiled new rules for digital assets accounting. On Sept. 6, the U.S. Financial Accounting Standards Board (FASB) approved guidelines on how companies can report the fair value of their cryptocurrencies on balance sheets.
"We’ve actually received a surprising amount of clarity on both the tax and accounting side of digital assets," White said about the recent developments. He said that from a tax perspective, "the IRS recently provided a better picture of how staking rewards will be taxed, as well as who meets the definition of a “broker,” and thus, who will be required to send the new 1099-DA forms to customers." With more transparent rules, regulators are expected to monitor digital asset dealings more closely.