Cryptocurrency, Featured

After Acquisition, Crypto Companies Sees Growth In Trading Volumes

Crypto Facilities’ acquisition by Kraken on February 4 has only reaped profits to the former. The UK-based crypto exchange has seen a significant increase in the trading volume.

Sui Chung, head of cryptocurrency pricing products at Crypto Facilities, stated that the platform’s trading volume has increased more than 500 per cent. He further stated that the company’s average trading volume in January was around $7 million per day. After the announcement for acquisition by Kraken was made public, it increased by $32 million per day in February, touching up to $110 million per day in the same month.

Crypto Facilities is fully regulated by the UK’s Financial Conduct Authority, which makes sure that Kraken tightens its hold in the European market.

Similarly, in the begin of March, Goldman Sachs-backed cryptocurrency finance firm Circle bought SeedInvest, a crowdfunding platform and registered operator of broker-dealer. This acquisition will pave the way for the company to tokenize securities in the future. The deal was announced in October and it is approved by self-regulatory organization FINRA, as mentioned on CoinDesk.

The co-founders of Circle Sean Neville and Jeremy Allaire agree that the acquisition is a further step in realizing their vision of a more open, global, connected and inclusive financial market.
“We believe that the tokenization of financial assets will ultimately unlock capital for growing companies and investment opportunities for people everywhere. Over time, more functions of private equity will be tokenized — including voting and governance, dividend payouts, and other economic features,” Neville and Allaire stated.

On the same note, the increase in trading volumes of Crypto Facilities after the acquisition is supposedly linked to the strong latent demand for crypto futures from the Kraken customer base. Chung explained that Crypto Facilities can offer services to Kraken users if they are compliant with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, Cointelegraph reported.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
coinmag

Aabha Singh finds time from her hectic editorial schedule to write finance articles.

Leave a Comment

Your email address will not be published. Required fields are marked *