Kraken's acquisition of a well-known OTC Trading platform to expand the scale of its OTC Trading business.

Cryptocurrency exchange Kraken has announced the completion of the acquisition of a well-known over-the-counter (OTC) trading platform. The acquisition will significantly expand Kraken’s OTC business to more than 20 people. It is reported that Kraken’s OTC business will be led by Wall Street veteran Nelson Minier.

According to industry sources, the acquired OTC platform has been looking for a buyer since this summer. With a notional trading volume of $24 billion in 2018, the platform was once one of the industry’s leading OTC service providers. However, in March this year, the company owned by the platform laid off about 30 people in the finance department, about 10% of the total workforce. The company attributes this to the increasingly tough regulatory environment in the United States. In addition, the brain drain has also had an impact on its off-market business, including the departure of its former OTC business executive.

It is worth noting that the acquired OTC platform company has recently adjusted its business structure frequently. The company has successively announced the suspension of its research arm and payment applications. Previously, the company bought one of the world’s largest digital currency exchanges at the time for $400 million in early 2018. However, in October of this year, the exchange was spun off from the company and was taken over by an Asian company.

This series of actions reflects the rapid change and fierce competition in the cryptocurrency industry. With the tightening of the regulatory environment and changes in the market landscape, major platforms are actively adjusting their strategies to adapt to the new industry realities. Kraken’s acquisition of the OTC platform may be aimed at strengthening its position in the OTC market and enhancing its competitiveness.