Kraken acquires UK start-up Crypto Facilities in ‘nine-figure’ deal

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Written on Feb 4, 2019

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US cryptocurrency exchange Kraken has acquired British futures trading start-up Crypto Facilities, industry website Coindesk has reported. While the financial terms of the deal haven’t been disclosed Kraken described the acquisition as a “nine-figure deal”, indicating that it had paid at least $100 million to acquire the London-based business. As noted by Coindesk, this makes the acquisition the largest seen so far in 2019. It is also Kraken’s largest-ever acquisition.

In its official press release, published earlier today, Kraken said that the acquisition “reinforces Kraken’s commitment to meeting client demand for innovative products and services that complement its core spot exchange and white-glove OTC service”. The move would enable eligible Kraken customers to access futures on six cryptocurrency pairs, Kraken added.

Crypto Facilities, which is regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA), offers futures on Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). It is also the provider of the CME CF Bitcoin Reference Rate that powers CME Group’s Bitcoin futures offering.

“I’m thrilled to welcome the Crypto Facilities team into the Kraken family,” Kraken’s chief executive officer, Jesse Powell, commented on the deal. “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.”

Meanwhile, the founder and CEO of Crypto Facilities Timo Schlaefer said that the acquisition by Kraken would allow the start-up to innovate the next generation of products.

Following the acquisition, Crypto Facilities will remain based in London to benefit from the regulatory oversight of the FCA. It also reflected Kraken’s commitment to the UK as the leading financial and cryptocurrency hub in Europe, the company added.