A US crypto exchange giant Kraken has acquired a UK-based Crypto Derivatives Trading Platform and Index provider in what it refers to as a ‘nine-figure deal’, according to a press release dated February 4, 2019.
According to the broadcast, the merger would form a world leader in cryptocurrencies and futures trading given each of them has had a successful record over the years in their respective fields.
“Kraken, consistently rated the most secure digital asset exchange and leader in euro volume since 2013, today announced the acquisition of Crypto Facilities, a world-leading, regulated cryptocurrency trading platform and index provider. The combination creates a global leader in cryptocurrency spot and futures trading,” the report said. The move, if well managed, might see the 46th largest Bitcoin exchange platform easily propel to the top 10
Kraken, one of the longest-serving crypto exchanges in history seems to have mastered the art of surprises. Just a few months ago, the firm made headlines after a firing spree that saw 57 of its employees shown the door amid rumors of a security breach. When reached for comment, Kraken CEO confirmed that indeed at 57 employees were relieved off their duty at the firm’s Halifax office in Canada. He was however quick to point out there no such breach as had been rumored was and that the layoffs were in line with the firms measures “to reduce on costs and better align with the pace of growth in the industry”
Its move into the Bitcoin Derivatives Space therefore, can be viewed as both another bundle of surprise and also tactical in some sense. A number of people believe Kraken’s venture into the Bitcoin Derivatives space might be a tactical response to Huobi Global whose venture in the space a few months ago is already bearing fruits. By January 12, 2019, Houbi’s crypto derivative market, launched on November 21, 2018 had already bypassed the $20 billion mark in cumulative trading volume
The firm also decided that the Crypto Facilities will remain London-based as more exchanges look overseas to expand their market while also evading the hawk-eyed regulatory watchdog within the US jurisdiction.
“Crypto Facilities will remain London-based, benefiting from the regulatory oversight of the Financial Conduct Authority, one of the world’s most forward looking and innovation-focused regulators, and reflecting Kraken’s commitment to the UK as the leading financial and cryptocurrency hub in Europe,” the press statement emphasized.