Kraken Becomes First Crypto Exchange to Offer both Spot and Futures Trading after Crypto Facilities Acquisition
San Francisco-based digital asset exchange Kraken announced that it has acquired cryptocurrency futures broker Crypto Facilities and is reportedly on its way to completing a $100 million fundraising round.
Futures Are Coming to Kraken
According to a company press release, Kraken has purchased London-based cryptocurrency trading firm and index provider, Crypto Facilities, in a nine-figure deal. Through this move, Kraken is able to expand its reach as the first exchange to offer spot trading as well as regulated futures trading for digital assets.
Crypto Facilities is an FCA-regulated trading company that provides crypto futures trading for institutional investors. The startup was the first regulated financial services company to list futures on bitcoin, ether, XRP, litecoin, and bitcoin cash. Crypto Facilities is also the entity that calculates the CME CF Bitcoin Reference Rate which the CME Group’s Bitcoin futures use as a market-leader in cryptoasset indices.
Kraken users will now be able to trade both spot and futures on one platform. U.S. investors, however, will not yet be able to trade futures on Kraken for regulatory reasons. Kraken CEO Jesse Powell said:
“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.”
“It has been our mission to build the most sophisticated, powerful and user-friendly cryptocurrency trading platform. Teaming up with Kraken allows us to innovate the next generation of products and tremendously boosts the value we are able to provide to our clients,” said Crypto Facilities CEO Timo Schlaefer.
More Money for Kraken
In an interview with Fortune, Powell said that his company is currently in the process of closing a $100 funding round.
Interestingly, Kraken is not venturing down the round of VC funding or an initial coin offering (ICO). Instead, the exchange has decided to reach out to its customers directly to fill its “war chest.” Powell told Fortune that these investors include “crypto OGs to funds to random guys who trade and believe in the company.”
With the acquisition of Crypto Facilities, its new crypto futures offering, and another funding round closing soon, Kraken is well-positioned to retake market share from the likes of BitMEX and Binance to become a serious contender for the top spot among all bitcoin exchanges.