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Kraken acquires Crypto Facilities in nine-figure deal

Tony Zerucha

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Kraken this week announced the acquisition of Crypto Facilities, a regulated cryptocurrency trading platform and index provider. The combination creates a global leader in cryptocurrency spot and futures trading, the companies believe.

London-based Crypto Facilities offers individuals 24/7 trading on a range of cryptocurrency derivatives. The firm was one of the first regulated entities to list futures on Bitcoin, Ethereum, Ripple XRP, Litecoin and Bitcoin Cash. Crypto Facilities is also a cryptocurrency index provider, calculating the CME CF Bitcoin Reference Rate that powers the CME Group’s Bitcoin futures. 

The acquisition of Crypto Facilities reinforces Kraken’s commitment to meeting client demand for innovative products and services that complement its core spot exchange and white-glove OTC service. Eligible Kraken clients will gain access to futures on six cryptocurrency pairs, providing a highly efficient way to trade and hedge cryptocurrency in any market environment.

With more than four million clients in more than 190 countries, including professionals, institutions and authorities, Kraken delivers trading in 20 digital assets and 70-plus currency pairs, and offers the industry’s most popular advanced charting, trading and portfolio tracking tools through Cryptowatch.

“I’m thrilled to welcome the Crypto Facilities team into the Kraken family,” said Kraken CEO Jesse Powell. “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.”

“It has been our mission to build the most sophisticated, powerful and user friendly cryptocurrency trading platform,” Crypto Facilities founder and CEO Timo Schlaefer said. “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.”

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 nine-figure deal is Kraken’s largest acquisition to date and one of the largest the industry has seen. Kraken’s previous acquisitions include major Bitcoin exchanges Coinsetter, Cavirtex and CleverCoin; the award-winning wallet funding service Glidera; and the popular multi-exchange charting, trading and portfolio tracking platform Cryptowatch.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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