Crypto Exchange Kraken Closes a $100M Deal
February 5, 2019 11:07 am
Kraken, which is one of the biggest crypto exchanges, has acquired digital assets worth at least $100 million from a start-up, Crypto Facilities. It is very well the biggest deal in the crypto industry this year.
On Monday, the San Francisco based company announced that the big acquisition would allow its customers to trade crypto related futures and spots.
Kraken can now offer futures trading, involving a myriad of cryptocurrencies including Bitcoin, Bitcoin Cash, XRP, Litecoin, and Ether through the integration of Crypto Facilities’ services.
Crypto Facilities, the company founded in 2014, is the UK’s first crypto futures service that is registered with the Financial Conduct Authority. The London-based start-up carries out calculations of CME CF Bitcoin Reference Rate, a regulated index that boosts the CME Group’s Bitcoin futures. The start-up revealed that both firms – Kraken and Crypto Facilities received a green signal from the UK regulator to go ahead with the acquisition.
Kraken Aims for Expansion in Europe
In a press statement, Kraken CEO, Jesse Powell asserted that the hiring of UK start-up would fortify their business throughout Europe, a market surrounded by both licensed and unlicensed crypto services. However, Powell emphasized the need to land “eligible clients” to the crypto industry via “industry-leading futures and index products.”
The announcement comes after months of speculations related to mainstream investors looking for a genuine entry in the crypto market. Although the primary focus has been on US investors, the emerging crypto regulatory framework in Europe is gaining attention from local investors as well.
Such developments pose as opportunities to break loose from conventional 9-to-5 weekday trading, as Powell says, “providing a highly efficient way to trade and hedge cryptocurrency in any market environment. Over the coming months, our teams will continue to enhance and expand these offerings. We’ve got great stuff in store for traders and institutional clients in 2019.”
No Management Tweak Required
As indicated by the parent company, no changes would be made in the Crypto Facilities’ team, and it would continue to work as an independent body, making it a broader part of the Kraken group. Timo Schlaefer, Crypto Facilities CEO, will retain his position post-acquisition.
In his press statement, Schlaefer said, “It has been our mission to build the most sophisticated, powerful and user-friendly cryptocurrency trading platform. Teaming up with Kraken allows us to innovate the next generation of products and tremendously boosts the value we are able to provide to our clients.”