Kraken Expands Its Footprint by Acquiring Circle’s OTC Desk
In a significant move for the cryptocurrency landscape, Kraken, the San Francisco-based exchange, announced it has acquired Circle’s renowned over-the-counter (OTC) desk on December 17. This acquisition, described in a blog post by Kraken, marks a pivotal moment as they take ownership of one of the most recognized OTC desks in the industry.
Words from the Founders
Circle co-founders Sean Neville and Jeremy Allaire expressed confidence in this new partnership, stating, “We have known and admired Jesse and his team at Kraken for many years… Circle Trade represents an enormous success for the industry as well as for Circle, and we’re excited to see Kraken grow it further.” High fives all around, right?
Focusing on Stablecoins
But wait, there’s more! This acquisition aligns with Circle’s strategic plan to enhance its stablecoin platforms. As the co-founders reiterated, “2020 is going to be the year for stablecoins.” With recent global movements towards digital currencies and rising interest in stablecoins like USDC and Tether, their decision seems well-timed.
Cuts and Changes at Circle
Interestingly, this announcement comes on the heels of Circle reducing its workforce by eliminating roles to streamline its operations. A spokesperson noted that the focus is shifting to their star player, USD Coin (USDC). While layoffs can seem daunting, the strategy aims to sharpen their product focus and reorganize teams for agility.
Kraken’s Plans with New Resources
Kraken’s acquisition is not just a name change; they anticipate this deal will significantly enhance their offerings. Expect new global trading partners, tighter spreads across assets, and improved trading tools that make going from quote to settlement smoother than a buttered seal on ice.
A Leadership Shift at Circle
Oh, and there’s a plot twist! Sean Neville recently stepped down as CEO, transitioning to a role on Circle’s board of directors. Fear not, though—his influence on the company’s vision for 2020 remains intact. This is not a goodbye, just a change of scenery!
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