Exchange

Kraken Undertook a Major Acquisition

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A large US-based cryptocurrency exchange named Kraken has declared publically about its acquisition of another cryptocurrency trading company titled Crypto Facilities; it is also an index provider. The purchase is said to be worth nine-figures. This deal would bring many facilities and features to the existing and new Kraken clients.

The purchased company raised USD 1.5 million in a seed funding round conducted in 2016. The seeding was undertaken by AngelList syndicate with the help of DCG, Playfair Capital, and a veteran hedge fund expert Lee Robinson.

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The crypto trading company (Crypto Facilities) acquired by Kraken is based out of London, and I was the first regulated trading platform to list Bitcoin, Ethereum, Ripple XRP, Litecoin futures along with Bitcoin Cash. The CEO of Kraken told media that users are all set to trade on a single platform as the company has already incorporated the backend operations of Crypto Facilities in the Kraken system. However, there is one alert for the trading customers from the US. The platform, at present, is not supporting tradings of futures for its US clients.

The statement issued by the company expressed the excitement of the company after introducing leading futures and index products in the market and enabling its users to deal in them. The company said that in the coming months the number of offerings would be extended.

As per the statement, the purchase deal was closed at the end of the previous year only; however, it is has been made public today. The founder of the Crypto Facilities will stay in his position as a CEO. The CEO also functions as an administrator and contributor of the Bitcoin Reference Rate. This rate decides the real value of Bitcoin so that the functioning of the cash-settled derivatives market runs well.

The press released praised the functioning of the Crypto Facilities, which works as per the regulations of the UK’s governing authority. This compliance with rules and regulations help to serve clients with high integrity. As per the media, the company is about to complete a USD 100 million funding round which is backed by its key customers and investors; their names are not revealed though. However, the company said that these are the people who trade on the company’s platform and believe in it.

The company was saved from dealing with the regulators also as it had approached only those investors, and traders who are exempted from the rules of the US Securities and Exchange Commission, and most of the investment came from a foreign land; not the US. The exchange claims to have over 40million customers across 190 countries.

Before acquiring Crypto Facilities, Kraken has purchased Cavirtex, Coinsetter, and CleverCoin and Glidera along with Cryptowatch.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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