Kraken Acquires OTC Desk from Circle as it Sheds Crypto Parts for Stablecoin Project
December 18th, 2019
Kraken’s OTC desk under Wall Street veteran Nelson Minier sees expansion as the firm acquires Circle Trade. The recent buy also indicates how Circle is shedding its’ crypto acquisitions.
1/ fascinating to watch @circlepay shed parts of it business
now the trading desk is sold to @krakenfx
— Meltem Demirors (@Melt_Dem) December 17, 2019
According to sources, the digital asset management firm is focusing its efforts on the USDC stablecoin. Jeremy Allaire, the CEO of Circle and co-CEO Sean Neville wrote that they will continue to built on their “platform services infrastructure.”
Circle Tokenizer provides with the opportunity to convert FIAT currencies into the USDC stablecoin. According to the firm, they are driving towards increased adoption of the technology.
Kraken Leads Bitcoin Business Acquisitions
On the other hand, Kraken is apparently on an acquisition spree. The current acquisition will allow Kraken to strengthen the liquidity and reach of it’s OTC desk. The exchange reported support from “New trading partners around the world, particularly in Asia.”
James Lopp, Crypto analyst and the CTO of CasaHodl tweeted,
By my count The Kraken has consumed at least half a dozen Bitcoin businesses. @jespow has truly built a monster
Rightly so, the acquisitions page shows how Kraken has concentrated its’ expansion plans on Bitcoin custody and wallets providers, and exchanges around the world.
The shifts undertaken by the two leading firms projects a dim future for altcoins. While Circle aims to provide stablecoin services, Kraken is expanding it’s business with support to limited number of cryptocurrencies. The current dominance of Bitcoin over the crypto market is at 67.5%.