Futures trading gives traders more liquidity than regular trading. This is why Bitcoin futures was a hit. Now, the largest BTC exchange in the globe, Kraken, has acquired a cryptocurrency firm, Crypto Facilities. The firm is based in London and the acquisition is said to have cost Kraken up to nine figures. Crypto Facilities is a cryptocurrency exchange that is focused on providing derivatives trading as well as an index.
Kraken Acquires Crypto Facilities
The acquisition of Crypto Facilities is a bold move by Kraken because the firm is regulated by the Financial Conduct Authority in the United Kingdom. It is the first regulated platform to ever offer futures trading for BTC, ETH, XRP, LTC, and BCH. The CEO of Crypto Facilities, Timo Schlaefer, said that the company’s mission is to build the best user experience there is. In his words:
“Our mission is to build the most powerful, user-friendly, and sophisticated trading platform in the world. Joining Kraken gives us the opportunity to innovate the new generation of products and boost the value of what we offer the public.”
Bitcoin (BTC) Price Today – BTC / USD
With this acquisition, Kraken will integrate a futures and spot market for BTC, XRP, and ETH. Opening this market for the big three cryptocurrencies is a big deal that will allow Kraken customers who meet the eligibility requirements of the platform to enjoy futures trading. Kraken announced that it has integrated back-end operations for Crypto Facilities. Note that customers in the US will not be able to participate in this program. The CEO of Kraken, Jesse Powell, said:
“I am happy to welcome the Crypto Facilities team to our family. We are eager to welcome eligible clients who are interested in these index products and futures market. In the next few months, both teams will focus on expanding and enhancing the offerings. There are many great things in store for retail and institutional investors this year.”
XRP (XRP) Price Today – XRP / USD
Following the announcement, a Redditor said:
“If we get more liquidity into derivatives, this would mean that there is more demand for the fiat copy rather than real digital assets. Kraken is an on-ramp for the fiat copy. It is enabling the outflow of capital from underlying tokens.”
Offering BTC, ETH, And XRP Futures Trading Is The Next Big Thing
This is notably the largest acquisition in the cryptocurrency industry. While Kraken is yet to reveal the amount it spent on the acquisition, sources familiar with the matter claim that it cost up to nine figures. While it is the most expensive acquisition, it isn’t the first. A while ago, Kraken acquired three different companies, Cavirtex, Coinsetter, and CleverCoin. These three firms are some of the best Bitcoin exchanges in the market. The company also acquired trading and tracking cryptocurrency platform Cryptowatch as well as Glidera, a wallet funding service.
Kraken believes that enabling futures trading for BTC, XRP, and ETH is the next big thing. This new market is part of the company’s game plan to become the best exchange in the world.
Do you think enabling futures trading for BTC, XRP, and ETH is a going to be profitable for Kraken in the long run? Feel free to share your thoughts.