Cryptocurrency exchange Kraken has officially acquired a regulated futures trading start-up called Crypto Facilities. The deal was finalised at a yet undisclosed value, but it is said to be more than $100 million.
The nine-figure acquisition is the largest single deal for the cryptocurrency industry in 2019 so far. The move will enable Kraken customers to spot trade as well as open positions offering exposure to the future price movements of cryptocurrencies, all through a unified and regulated trading interface.
We have exciting news: @CryptoFLtd is now part of the @krakenfx family! The combination creates a global leader in #cryptocurrency spot and #futures trading – https://t.co/QV9fkRZMWO pic.twitter.com/iTs031x4Xc
— Kraken Pro (@krakenpro) February 4, 2019
Kraken CEO Jesse Powell framed the merger as one that would “massively accelerate” his company’s roadmap, enabling the San Francisco-based start-up to sidestep years of efforts to obtain the licenses and approvals necessary to offer a competing service in Europe.
Who are Crypto Facilities?
The acquired company Crypto Facilities was founded in 2014 and is registered with the UK Financial Conduct Authority (FCA). In addition to offering cash-settled futures trading for Bitcoin, Bitcoin Cash, Ripple, Litecoin, and Ethereum trading pairs, Crypto Facilities provides data to the CME Group as part of their Bitcoin reference rate (an index that powers the CME Group’s US futures offering).
In their blog post, Kraken said that “Crypto Facilities reinforces our commitment to meeting client demand for innovative products and services that complement our core spot exchange and white-glove OTC service.”
They also mentioned that eligible Kraken clients will gain access to new futures products on six cryptocurrency pairs.
What the CEOs said
On the conclusion of the deal, Kraken CEO Jesse Powell said that he was “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.”
Timo Schlaefer, Crypto Facilities CEO and soon to be Kraken COO, also 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.”
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.