US-based cryptocurrency exchange Kraken has acquired Circle’s global OTC desk.
This is according to an official blog post by the cryptocurrency exchange. Circle is one of the first firms to have entered the crypto space. Initially created to offer liquidity for bitcoin payment, it had one of the most thriving OTC desk in the digital assets sphere.
In the blogpost, Kraken affirmed the OTC’s robustness. It said it was taking over “one of the most recognized OTC desks in crypto.”
Circle plans to focus on its stablecoin
Co-founders of Circle, Jeremy Allaire and Sean Neville disclosed that the sale was part of the firm’s plan to focus on its stablecoin USDC. They added that they were sure that Kraken will continue to keep Circle Trade up and running. ” 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.”
According to circle, the sale of the OTC desk was essential. This is because the firm is looking to secure extra resources for establishing its own stablecoin.
The OTC desk will now be supervised by Wall Street veteran Nelson Minier. He already plans to add about twenty new staff members to the team. This is to ensure that Kraken continually offers top-notch service to its users.
The acquisition will provide Kraken with newer trading partners from across the globe, especially in Asia. It will help improve the assets’ liquidity and improve growth. Kraken will also offer enhanced automation and more developed tools for traders. These tools will help streamline the trade procedure from quote down to settlement.
Besides, Kraken is a highly recognized company in the US and European cryptocurrency markets.
Over the last few months, Circle has made a few notable changes in its operational strategies. In September, it placed Circle Research on halt. It also cancelled its crypto payment app feature Circle Pay. Prior to that, in May, the company laid off roughly ten percent of its workforce citing regulatory uncertainties.