Kraken Exchange Acquires Circle’s OTC Desk
On December 17, Kraken exchange announced its acquisition of Circle’s over-the-counter (OTC) desk. The San Francisco based crypto exchange said the company has bought one of the prestigious OTC desks in crypto.
Sean Neville and Jeremy Allaire, the co-founders of Circle, confirmed the sale of the firm’s OTC business to Kraken. They said,
“We are announcing today that we’ve sold the Circle Trade OTC business to Kraken. We have known and admired Jesse and his team at Kraken for many years, and we have every confidence and expectation that Circle Trade customers and partners will continue to find best-in-class OTC liquidity service and responsiveness through Kraken going forward. Circle Trade represents an enormous success for the industry as well as for Circle, and we’re excited to see Kraken grow it further.”
According to Circle’s co-founders, the sale of the OTC desk is part of the firm’s sharpened 2020 product road map. The company states that it needs to focus effectively on its stable coin platforms in order to execute with greater speed, per their road map. It wants to achieve this by reducing complexity, reorganizing its teams and also tightening its product portfolio.
The announcement followed the news that Circle had laid off 10 more employees in the beginning of this month. A spokesperson confirmed that the company took this action because they wanted to focus on its USDC stable coin.
Meanwhile, Kraken is expecting this acquisition to significantly improve its services. The firm hopes to provide new global trading partners, tighter spreads across all supported assets as well as higher liquidity. It also wants to improve trader tools that will facilitate easy trading processes from quote to settlements.
Featured image courtesy of Kraken.com. Source: CryptoPress.