Kraken, which is claimed to be the world’s largest global bitcoin exchange in euro volume and liquidity, has acquired Crypto Facilities, a regulated cryptocurrency trading platform and index provider, for an undisclosed amount.
Image: Kraken acquires crypto derivatives trading platform and index provider, Crypto Facilities, in Nine-figure Deal. Photo: Courtesy of Kraken.
Kraken, in its blog stated that it is a nine-figure deal, but did not disclose the exact amount.
London-based Crypto Facilities offers individuals and institutions, a transparent, secure, 24/7 trading platform for a range of cryptocurrency derivatives.
It is claimed to be the first regulated entity to list futures on Bitcoin, Ethereum, Ripple XRP, Litecoin and Bitcoin Cash. It is also a cryptocurrency index provider, calculating the CME CF Bitcoin Reference Rate powering the CME Group’s Bitcoin futures.
Kraken CEO Jesse Powell said: “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.”
The acquisition will reinforce Kraken’s commitment of meeting its client demand for new products and services that can complement its core spot exchange and white-glove over-the-counter (OTC) service.
Eligible clients of Kraken will now be able to access futures on six cryptocurrency pairs, offering a better way to trade and hedge cryptocurrency in any market environment.
Crypto Facilities CEO and founder Timo 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.”
After this acquisition, Crypto Facilities will remain in London and will benefit from the regulatory oversight of the Financial Conduct Authority (FCA), an innovation-focused regulator.
Kraken claims that Crypto Facilities’ purchase is the largest acquisition till date. Some of its other acquisitions include Bitcoin exchanges Coinsetter, Cavirtex and CleverCoin, a wallet funding service Glidera and Cryptowatch, a multi-exchange charting, trading and portfolio tracking platform.