Kraken buys OTC desk of Circle in a bid to increase its global customer base. Kraken, the cryptocurrency exchange based in San-Francisco, has been actively pursuing its expansion spree with acquisition of new product-specific firms.
The ‘Over-The-Counter’ operations of Circle are known to have a broad customer base in the cryptocurrency trading realm. The acquisition deal was confirmed by Jeremy Allaire and Sean Neville of Circle. They said that Circle admires Kraken team for their efficient and effective operations. The addition of Circle’s OTC desk to Kraken’s product portfolio will ensure the customers experience superior OTC liquidity. Both said that they are excited to see a responsible cryptocurrency exchange such as Kraken grow their OTC operations further.
Circle to focus solely on its stablecoin
As per Circle co-founders, the company’s strategic roadmap for the year 2020 involved the sale of its over-the-counter trading desk. This will help Circle sharpen its focus on its stablecoin. This vital sale will help Circle improve team agility, reorganize resources, lower complexity in operations and achieve a specialized product portfolio. The news of Kraken buys OTC desk of Circle will also suit the traders as both brands are well respected in the trader community.
Circle has laid off ten employees in the first week of December in a bid to streamline some divisions. The company announced that its focus remains solely on its stablecoin, USDC. Circle wishes to expand its stablecoin operations by undertaking more strategic partnerships in 2020. In another development, the Circle co-founder Sean Neville has stepped down from the position of ‘Chief Executive Officer’.
Kraken buys OTC desk of Circle with massive expansion plans in mind
Kraken expects this acquisition to significantly bolster its product portfolio that will ultimately help it gain more trading partners. The desk will be enriched with more features to provide tighter spreads, advance trader tools and excellent liquidity.
When Kraken buys OTC desk of Circle, it will undoubtedly optimize it to suit their needs. More digital assets will be supported in the future to target global clients. From quote to settlement, the entire trading process will be streamlined to suit the trader’s interests.
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