The exact terms of the deal were not disclosed but the two companies said it was a “nine-figure deal” and Kraken’s largest acquisition to date. The acquisition is one of the largest ever in the crypto industry.
Crypto Facilities is a digital asset trading platform that lists a range of crypto derivatives which are tradable 24/7/365. Founded in 2015 and headquartered in London, Crypto Facilities is authorized and regulated by the UK’s Financial Conduct Authority (FCA). Crypto Facilities claims to be the first regulatory compliant marketplace in the UK to list futures in Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash. Crypto Facilities is also an index provider and calculates the CME CF Bitcoin Reference Rate for the CME Group’s Bitcoin futures.
Crypto Facilities clarified that it will remain in London “benefiting from the regulatory oversight of the Financial Conduct Authority, one of the world’s most forward-looking and innovation-focused regulators.”
The acquisition is being described as reinforcing “Kraken’s commitment to meeting client demand for innovative products and services.” Eligible Kraken clients will now gain access to futures on six cryptocurrency pairs.
“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 founder, said that teaming up with Kraken will allow them to “innovate the next generation of products and tremendously boosts the value we are able to provide to our clients.”
The crypto exchange industry is entering a period of consolidation as regulations take hold and smaller platforms look to join up with larger, better-established marketplaces.
Founded in 2011, Kraken is based in San Francisco and claims to be the “world’s largest global Bitcoin exchange in euro volume and liquidity.” Kraken says it services over 4 million traders, including institutions. Kraken’s OTC desk has facilitated over $2 billion in trades.