Kraken acquisition of Circle Trade strengthens OTC business layout

The crypto assets exchange Kraken announced the acquisition of one of the well-known OTC trading service providers, Circle Trade. The announcement stated that Kraken's OTC business will be led by Wall Street veteran Nelson Minier. After the completion of this acquisition, the operation team of the OTC platform will expand to more than 20 people.

According to industry insiders, Circle has been looking for buyers for its OTC Trading platform since this summer. In 2018, Circle's OTC Trading platform achieved a nominal trading volume of $24 billion. In March of this year, Circle laid off about 30 employees from its finance department, accounting for about 10% of the company's total staff. Circle attributed this move to the challenging regulatory environment in the United States. Its OTC Trading business has also been affected by talent loss, including the departure of former OTC supervisor Ryan Salame.

Circle recently announced the suspension of Circle Research and the operation of the application Circle Pay. It is worth noting that in early 2018, Circle acquired Poloniex, one of the world's largest digital currency exchanges at that time, for a high price of $400 million. However, in October of this year, Poloniex announced its spin-off from Circle, with operations taken over by an Asian company named Polo Digital Assets, Ltd.

This series of changes reflects the dynamic shifts and constantly adjusting market landscape of the Crypto Assets industry. As the regulatory environment evolves and market demand changes, industry participants are actively adjusting their strategies to adapt to new challenges and opportunities. Kraken's recent acquisition of Circle Trade may aim to strengthen its position in the OTC Trading market and expand its range of services.

These changes may signal a trend of industry consolidation for the entire crypto assets ecosystem, as well as a strategy for large platforms to seek to enhance their competitiveness through acquisition. At the same time, this also highlights the significant impact of the regulatory environment on the development of the industry, prompting companies to continuously adjust their business models and operational strategies.