- Kraken exchange has bought trading firm Crypto Facilities for a “nine figure” sum
- It is the first exchange to offer both spot and futures trading
- The company has attracted funding from largest of its clients to avoid the interest conflict between exchange users and investors
Cryptocurrency exchange Kraken has announced that it has acquired British trading firm Crypto Facilities specializing in derivatives for a “nine figure” sum. This makes it the largest deal Kraken has ever signed. The company rejected to provide a precise price of the deal, which the both companies have worked on for the last 10 months.
Bringing Benefits Both for Users and the Exchange Itself
Acquisition of Crypto Facilities puts Kraken in a unique position. It is the first exchange to simultaneously offer spot and futures trading in cryptocurrencies like Bitcoin, Ethereum, and XRP. The deal is expected to increase revenues and attract institutional investors.
The users of both Crypto Facilities and Kraken will be able to trade on a single shared platform immediately. However, it is worth pointing out that U.S. customers will not be able to trade futures.
Funded by Own Customers
On early stages, Kraken has been funded by traditional investors, which include Hummingbird Ventures, Blockchain Capital, and Digital Currency Group. In this effort to raise 100 million USD though, unlike many other companies, Kraken attracted the funding from its clients, not the traditional investors. It did so by inviting larger customers to purchase a stake.
According to the company’s CEO Jesse Powell, this move was dictated by his philosophy that shareholders’ and customers’ interests tend to be different. One way to avoid this conflict is to turn customers into the only investors, which has been done. Powell further commented: “Look at Facebook looting from their users in order to pay off shareholders—that wouldn’t happen if users were shareholders themselves. It’s good to keep interests aligned.”
Sharing Satoshi Nakamoto’s Vision
Jesse Powell, who is known for his radical views, says that he continues to share a vision first expressed by Satoshi Nakamoto, Bitcoin’s pseudonymous founder, of a world where money is controlled by people, and not the governments. He commented:
“If you asked me seven years ago, I would have said Bitcoin would take over the world by 2015. I still think it’s going to take over.”