9 Figure Kraken Deal
Announced today in their official blog, Kraken has acquired the London-based cryptocurrency derivatives trading platform, Crypto Facilities, for a cool 100 Million Dollars. Kraken will now be securing it position as the world's first and only regulated Futures & Spot exchange for crypto trading in Europe.
Kraken acquires Crypto Facilities, positioning itself as the world’s first crypto spot and futures exchange! https://t.co/W4Xr1XNPpQ— Kraken Exchange (@krakenfx) February 4, 2019
The Kraken exchange has been a leader in the industry since 2013, especially in terms of Euro volume. Crypto Facilities was the very first regulated entity to list futures on Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple. Their index is also the one use by the CME Group for Bitcoin futures. The track record for both these companies are impeccable and is likely this acquisition will make Kraken an extremely powerful force in the market for the foreseeable future.
“I’m thrilled to welcome the Crypto Facilities team into the Kraken family. We are excited to introduce eligible clients to these industry leading futures and index products. 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." -Kraken CEO Jesse Powell
Kraken will now be able to continuously meet the growing demand for their spot exchange and "white-glove" OTC services. Existing clients of Kraken will also be able to trade on 6 crypto pairs. The Crypto Facilities trading firm will retain their residence in London and receive quality regulatory oversight from the Financial Conduct Authority there. As we can clearly see, both the heads of Kraken and Crypto Facilities are very exciting about this deal.
“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.” -Timo Schlaefer, Crypto Facilities CEO and Founder
This is certainly the largest of acquisitions that Kraken as taken on. Past entities include Bitcoin exchanges Coinsetter, Carvirtex, and Clever Coin, as well as Glidera, a wallet platform, and Cryptowatch, a market data provider. Some may say this move has been timed to allow them to survive even if there is continuation of a bear market for the next 1-2 years.
This deal is also another example of how more and more exchanges are making moves to broaden their outreach while also avoiding US regulatory oversight. Much like how in the fall of last year, crypto exchange Bittrex, made a move to Malta to enable more token options for their non-US customers.