Kraken is now the first crypto exchange in Europe to offer authorized futures products with the acquisition of Crypto Facilities after signing an undisclosed nine-figure deal.
This major move on the crypto market represents the largest acquisition of 2019 enabling Kraken clients to open positions to the future price movements of digital currencies in a single trading location.
London-based Crypto Facilities is registered with the UK FCA (Financial Conduct Authority) and became the first company ever to offer a derivatives trading platform a few years ago. The recent deal has been approved by the British regulatory agency.
According to the deal, Kraken will offer spot and derivative trading services for futures contracts for Bitcoin, but also for Bitcoin Cash, XRP, Litecoin and Ethereum. They plan to add more digital assets into the future.
If we look at this deal from a larger point of view and analyse things in context, this merger will provide Kraken better chances of succeeding in an increasingly competitive landscape.
China-based Huobi and Hong Kong-based BitMEX are already offering derivatives trading services for futures contracts and accordingly to Binance CEO, Changpeng Zhao, the crypto market is expected to develop even more into the future, so exchanges and investors who don’t want to lose the train make efforts to be part of the growing crypto market.
Jesse Powell, Kraken CEO, highlighted the importance for a crypto exchange to address not only a large mass of people, but also go where money is and that means to offer products and services to retail traders and institutional investors with futures products.
As a sign of Kraken’s intentions to deliver better services, the San Francisco-based company has previously acquired three exchanges Coinsetter, Cavirtex, and Clever Coin, a wallet platform Glidera and data provider Cryptowatch.
According to multiple specialists, the industry really needs right now an influx of funds, so public and private investors are expected to increasingly access the space in the following years. Crypto exchanges like Kraken and Huobi are now only placing the foundations by delivering a diversified number of products and services while working with regulators to create a secure space for investors.