In a blog post today, Kraken announced the acquisition of Crypto Facilities for an undisclosed sum of over $100 million USD. Based in London, Crypto Facilities is a regulated Bitcoin and cryptocurrency trading platform and index provider. The company specializes in offering a range of Bitcoin and cryptocurrency derivatives to individuals and institutions.
Founded in 2015, Crypto Facilities was the first regulated entity to list futures for Bitcoin and other cryptocurrencies. They are authorized and regulated by the UK’s Financial Conduct Authority.
We are excited to introduce eligible clients to these industry leading futures and index products. Over the coming months, our teams will continue to enhance and expand these offerings. We’ve got great stuff in store for traders and institutional clients in 2019.Kraken CEO Jesse Powell
The nine figure deal made by Kraken is their largest acquisition since being founded in 2011. It’s also one of the largest deals made in the space to date. Kraken’s previous acquisitions include Coinsetter, Cavirtex, CleverCoin, Glidera and Cryptowatch.
Kraken processed over $90 billion in exchange volume in 2018 and an additional $2 billion of volume via it’s OTC desk. This makes them one of the largest regulated fiat to Bitcoin exchanges. With Kraken now adding Bitcoin derivatives to their mix, they are now an even more potent competitor in the space. At least in Europe that is.
For those hoping this deal will provide more liquidity or bullish price pressure for Bitcoin…well…unfortunately that will not be the case. The derivatives offered by Crypto Facilities are all cash settled. Which means the exchange does not need to hold any Bitcoin reserves. The excitement about physical futures is with Bakkt…who are launching their very own physically settled futures soon.