Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
This acquisition made by Kraken is a demonstration that the platform has evolved beyond custodian and trading venue.
Crypto exchange Kraken has announced its acquisition of Staked, a blockchain infrastructure company and investment manager for an undisclosed amount. According to the company, this is one of the largest crypto industry acquisitions to date. Kraken is known as a leading provider of staking services to consumers and institutions.
According to Jesse Powell, CEO and co-founder of Kraken, Staked is highly complementary to their staking business. “We are excited to add Staked to our portfolio of yield products, which has seen great uptake by a growing population of crypto investors,” said Powell. “We’re excited to welcome Staked’s clients to Kraken and believe that they will benefit from access to our wider portfolio of products as they seek to broaden their engagement with digital assets, ” he added.
He further stated that the acquisition will enable them to strengthen their product offering through their provided infrastructure for clients who prefer to retain custody of their staked assets. Staked has always sought to support its mission of ensuring investors earn yield from their staking. They ensure that this is achieved without investors relinquishing the custody of their assets. Kraken on the other hand ensures that they provide seamless and secure access to staking products and services. This indicates that both companies seek to achieve the same objective.
According to Tim Ogilvie, CEO of Staked, this acquisition is an exciting new chapter for them. “Kraken clearly shares our commitment to supporting proof-of-stake networks, having a security-first mindset, and unwavering focus on customer experience, which makes them an ideal partner. Combining our businesses will enable us to provide a more seamless experience and expand our product offering to meet our clients’ needs in staking and beyond, ” he said.
Kraken has seen great success in its staking business, and according to Powell, this is a demonstration that the platform has evolved beyond custodian and trading venue. As of November this year, the company’s staking business had grown to nearly $16 billion, which is more than 960% surge since the beginning of the year. As a result, token reward valued at more than $500 million was being paid to clients.
“We’ve become a holistic crypto platform with a diverse range of products that serves the needs of retail, professional, and institutional clients. Heading into the second decade in our company’s history, I’m excited about the future and Kraken’s continued support of the world’s shift to Web3 and Defi, ” said Powell.
Kraken has over the past few years purchased several companies including the accounting and portfolio reconciliation provider Interchange Inc, as well as Australian crypto exchange Bit Trade and Cryptowatch.