Kraken Crypto Exchange Buys UK’s Crypto Facilities In $100M Deal

FinTech, Investing, News, Regulation | February 4, 2019 By:

Kraken has acquired Crypto Facilities, a British trading firm that specializes in derivatives, and is close to raising $100 million in funding from its larger customers.

By acquiring Crypto Facilities, Kraken becomes the first crypto exchange to offer both spot and futures trading. The deal has been approved by the U.K. Financial Conduct Authority (FCA), which had registered Crypto Facilities.

Besides cash-settled futures trading for bitcoin, Bitcoin Cash, XRP, Litecoin and ether, Crypto Facilities provides data to the CME CF Bitcoin Reference Rate, an index created in collaboration with CME Group. That is the engine of CME’s US futures offering.

Kraken has already integrated the back end of Crypto Facilities, meaning users will work off a single platform. However, futures trading won’t be available for US citizens.

Crypto Facilities CEO and founder Timo Schlaefer, a former Goldman Sachs executive, will stay on in his current role.

Kraken previously acquired several smaller exchanges, and puts it near the forefront of crypto exchanges scrambling for market share.