Circle payments startup announced on December 17 that it is pivoting its business model primarily to providing stablecoin services after selling its over-the-counter (OTC) trading desk to Kraken.
Circle payments startup announced that it is anchoring its business model primarily to providing stablecoin services. The news comes after the firm sold its over-the-counter (OTC) trading desk to Kraken. Additional executives were leaving as part of that Circle OTC sale deal. These top-ranking individuals leave just weeks after co-CEO Sean Neville said that he would be stepping down.
Neville and CEO Jeremy Allaire used a long blog post on December 17 to say that the company would majorly focus on its stablecoin business through 2020. Moreover, a suite of services will be set up around the dollar-pegged USDC.
Circle also said that chief legal officer Gus Coldebella and chief financial officer Naeem Ishaq would also step aside as part of that transition. However, Coldebella will continue to engage with the company holding the role of an advisor.
The announcement comes after Circle’s sale of the Poloniex trading platform in October 2019. Before that, the company had shut down its Pay app in September and dissolved its research wing. Circle also published that the deal to sell its OTC desk to Kraken crypto exchange had been finalized.
The Boston-based crypto firm decided to sell its once-mighty over-the-counter (OTC) trading platform as part of its restructuring strategy. Founded in 2013, Circle ranks among the earliest players in the virtual assets field and its OTC desk was once a highly profitable business in the market. When reached for comment, Kraken confirmed the sale.
Kraken Speaks on Circle’s OTC Platform Takeover
While announcing the takeover, Kraken stated that its OTC desk would now see over 20 employees. The move will enable the company to serve multiple new trading partners in Asia and other parts of the world. Kraken also expects the move to bring deeper liquidity and more automated tools.
This takeover deal should not come as a surprise. According to reliable sources, Circle has been searching for a buyer for its over-the-counter desk since the summer. Notably, Nick Gustafson who previously worked for Kraken came in to lead the OTC desk for Circle since August.
In the December 17 blog post, Allaire and Neville wrote that Circle will now focus on its “core strength as a result of the latest sale. They cited the startup’s “platform services infrastructure.” The post confirmed that the infrastructure supports the USDC stablecoin and “financial use cases worldwide.” In 2020, it will support custody, global payment, and stablecoin wallet APIs.
“These APIs will be offered as services to businesses and developers everywhere that will be able to take advantage of the innovation and efficiency of stablecoins without the cost, complexity, and risk of implementing this infrastructure themselves,” shared Circle.
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