Kraken Snatches Two Competitor Exchanges, Expands to North America

Kraken Snatches Two Competitor Exchanges, Expands to North America

The San Francisco-based Bitcoin exchange Kraken has  just announced the largest and merger and acquisition deal in Bitcoin exchange history as it has officially acquired major U.S. exchanges Coinsetter and Cavirtex. Kraken will now expand its business operations to the United States and Canada.

Also read: The Value of a Bitcoin: Teaching Your Kids Financial Responsibility

‘Year of the Kraken’

The digital currency exchange Kraken has quite the lion’s share of euro volume and liquidity within its marketplace operations. Now with the combination of these two services Coinsetter from New York and Cavirtex from Canada the company will absorb both of these companies’ customer base.

“Client accounts of both exchanges will be automatically transferred to Kraken’s cutting edge, low fee platform on January 26, 2016. Once the transfer is completed, account holders will be directed to to login, update account information if needed, and begin trading immediately,” the exchange explained in a press release.

Kraken says they’ve been a “dominant” exchange for bitcoin-euro (XBT/EUR) trading and look forward to expanding their operations. “The acquisition of Coinsetter and Cavirtex marks the beginning of a new era for Kraken,” said Kraken CEO Jesse Powell. He looks forward to operating within the other regions across the globe where Bitcoin is popular. Currently, in the U.S.  the platform will be available in 37 states, whereas all of Canada will be covered. To celebrate the acquisition, all Canadian and American clientele can deposit for free through March 1, 2016.

Powell states:

The consolidation of these three veteran giants is the largest exchange deal to date. Combined, we represent over thirteen years of bitcoin exchange experience in an industry that is only seven years old. Kraken has big, exciting plans for 2016. This year we will fully leverage what we’ve built as the world’s most trusted and secure bitcoin exchange. This is the year that we make long strides to capture key markets and crank up the volume. This is the year of the Kraken.

Additionally, the Coinsetter and Cavirtex teams are looking forward to joining forces with Kraken. Clients who use their services will be able to now receive what the San Francisco exchange has to offer. Outbound Coinsetter CEO Jaron Lukasiewicz said, “I’m excited what our acquisition by Kraken means for Coinsetter and Cavirtex customers, who will all benefit from Kraken’s leading platform, global team and unparalleled customer service. For years, the teams at Coinsetter and Cavirtex have worked closely with traders, bitcoin companies and investors to advance the burgeoning bitcoin space in North America. We are confident that Kraken is the right, world-class company with the resources, vision and drive to successfully carry our torch far into the future.”

Partnership with SynapsePay

As well as acquiring these two exchanges Kraken has also announced its partnership with U.S. payment processor SynapsePay “to allow rapid, low-fee domestic USD deposits and withdrawals to individual and institutional clients.” Meanwhile, Canadian clients will be using Vogogo that Kraken has already established a firm partnership with. The company wants to “set the stage” within these territories and aims to deploy the same services it offers to its European clients. The company has been around for quite some time establishing itself in the market in 2011. It made history becoming the first Bitcoin exchange displayed on the Bloomberg terminal. The exchange hopes to continue their success in 2016 and believes it will be the “Year of the Kraken.”

What do you think about Kraken expanding its exchange operations? Let us know in the comments below.

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