Kraken, the famous digital assets trading service has announced the acquisition of CleverCoin, one of the first Netherland-based Bitcoin exchanges. Kraken seeks to expand its product offerings and services to European customers.
Kraken is one of the most popular cryptocurrency exchanges in the world. Founded in 2011, the San Francisco-based company (although most of its volume comes from Europe) offers exchange and trading services (up to 5x leverage) in a wide variety of currency pairs.
With this acquisition, Kraken is one step closer to secure the total dominance over digital assets trading volume in the European region. The exchange will absorb thousands of new clients, and will reach new jurisdictions. Kraken CEO Jesse Powell said that existing clients of CleverCoin will be automatically transferred to the Kraken platform on June 29.
CleverCoin was founded in 2013, the company was one of the first Bitcoin exchanges in the Netherlands. The startup was accelerated by Boost VC, an investment firm backed by venture capitalist Tim and Adam Draper. Speaking of ClerverCoin’s acquisition by Kraken, CTO and Co-Founder of the Dutch company Karsten Nilsen said:
Kraken is the ideal custodian for CleverCoin going forwards. They are, by every measure, the largest bitcoin and digital asset exchange in Europe and our core beliefs are perfectly aligned. As of today, CleverCoin clients will have seamless access to all the features and benefits of Kraken’s global brand, including the ability to trade many of the most popular currency pairs, the latest technology, the most advanced security, and faster Single Euro Payments Area (SEPA) transfers.
The announcement is available on Kraken’s corporate blog reflects the possible impact of the company’s new acquisition:
Since the majority of CleverCoin clients are in European countries, the acquisition is expected to have the greatest impact on Kraken’s euro trading pairs. Average weekly volume in these pairs has already been growing at a rapid rate since the third week of April, with an over 4x increase in the bitcoin-euro (XBT/EUR) and ether-euro (ETH/EUR) pairs. The ether-bitcoin pair (ETH/XBT), has seen a massive 9x increase.
Kraken CEO Jesse Powell said:
In record time, the digital currency industry has matured. Our M&A plans have been accelerated by encouraging news throughout the industry. Prices are rising, the regulatory picture is rapidly clarifying, and clients from around the globe are joining us in record numbers. The acquisition of CleverCoin will empower Kraken with greater liquidity and a significantly expanded customer base in Europe, our flagship market.
The San Francisco-based company has secured investments from a myriad of ventures. In February, Japanese Venture Fund SBI Investment announce the launch of Series B round of financing. Another Japanese firm did the same, Money Partner Group a company providing foreign exchange margin trading service to ordinary investors through the Internet, expanded its round B series of investments.
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