Kraken Acquires Circle’s OTC Division
Cryptocurrency exchange Kraken stated that it has bought Circle’s over-the-counter (OTC) desk. In a blog post dated December 17, Kraken stated that the enterprise has acquired “one of the most recognized OTC desks in crypto.”
Circle co-founders Jeremy Allaire and Sean Neville reiterated the divestment of the Circle Trade’s OTC division to Kraken and said
“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.”
As per Neville and Allaire, the sale of Circle’s OTC desk is within the ambit of its “sharpened 2020 product roadmap,” in which the crypto focused firm points out that it has to concentrate on its stablecoin platform in an effective manner by minimizing issues, improve its product portfolio and restructure its groups to execute with better alacrity.
Notably, Circle sacked ten more employees in early December. At that time, a Circle representative stated that the company restructured certain departments and canceled roughly 10 positions. The spokesperson also affirmed that the enterprise is planning to concentrate on its stablecoin, USD Coin (USDC).
Kraken anticipates the takeover to “considerably bolster” its facilities, as it trusts to offer its new international trading associates, in-depth liquidity and narrow spreads throughout supported assets and enhanced trader tools that will assist simplify the trade procedures from quote to settlement.
Sean Neville, the company’s co-founder and co-CEO, has been appointed as a member of the Board of directors in January 2020. Neville rolled out Circle with Allaire in 2013. While working for the firm, Neville and Allaire enacted many modifications in the past few years, including a spin away from Bitcoin (BTC) and the takeover of cryptocurrency exchange Poloniex last year.