The world's largest Bitcoin exchange by euro volume, Kraken,
acquired New York City-based exchange Coinsetter and
Canada's first exchange, Cavirtex, on January 19, enabling an
immediate expansion into the North American market.
In a related deal, Kraken also
secured a strategic partnership
with American payment provider SynapsePay, enabling institutional
clients and individuals in 37 states to process domestic deposits
and withdrawals in American dollars.
The acquisition of Coinsetter enabled Kraken to enter the U.S.
market with ease, using the advanced trading infrastructure of
Coinsetter including FIX, WebSockets and REST APIs for a low
latency trading experience and its unique clientele. The Coinsetter
platform has been providing Kraken users with Bitcoin security
technologies such as SECURICOIN. Created by Coinsetter in 2014,
is an enterprise Bitcoin security solution designed to meet the
demands of wall street institutions, by storing bitcoin funds in an
offline wallet, that is completely detached from its online
With Kraken's leading platform and global team, Coinsetter CEO
Jaron Lukasiewicz stated that the acquisition will be beneficial
both for users and Coinsetter staff members.
"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
Despite Kraken's dominance over the European Bitcoin market, the
exchange has struggled to surpass the growth of leading American
Bitcoin exchanges such as Coinbase and Gemini, which have shown
rapid increase in the volume of USD-to-BTC trading pair.
With the resources of Coinsetter and its veteran staff members,
Kraken CEO Jesse Powell said that the exchange will fully establish
itself as the most trusted and secure Bitcoin exchange in the
world, with exciting services and products planned for 2016.
"The acquisition of Coinsetter and Cavirtex marks the beginning
of a new era for Kraken,"
. "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."
Coinsetter is also one of the few exchanges which has been
authorized to operate as a legal Bitcoin exchange in New York in
August 2015, after successfully obtaining a "BitLicense" from the
New York Department of Financial Services.
During this time, Lukasiewicz
, "While we serve a global user base of Bitcoin traders, New York
has long been Coinsetter's home. We are happy to announce that
Coinsetter will continue to be headquartered in New York City, a
global capital of banking and financial technology, and to serve
customers throughout New York State."
The acquisition of Coinsetter has already begun to play a vital
role in the global expansion of Kraken. On February 24, the Kraken
team announced that the company has seen a 2x increase in the
number of new accounts, with a growing number of U.S. customers
switching to Kraken.
"Kraken has seen a more than 2x increase in the number of new
accounts (not including the migrated accounts) since announcing our
Coinsetter & Cavirtex acquisition and United States expansion
into 37 states (plus Washington DC),"
said the Kraken team.