Circle makes power move with Poloniex Inc. acquisition
The money-sending app Circle – financed by Goldman Sachs – has today (Feb 26) announced its acquisition of US-based and regulated cryptocurrency exchange Poloniex following previously unconfirmed rumours that the deal was going to take place.
The move makes Circle one of the largest and most influential companies in the industry adding to it’s current roster of services. These services include: ‘Circle Invest’ – an app that will allow retail customers to invest in crypto markets; ‘Circle Pay’, used for fiat transfers; and Circle Trade as a liquidity provider of cryptocurrencies. The latter comprises the company’s busiest desk, trading more than $2 billion a month in cryptocurrency transactions with a minimum deal size of $250k.
“We also look forward to scaling Poloniex up and out through market expansion and localization, increasing token listings where possible and appropriate, and exploring the fiat USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products,” explained the company in a blog post. “We envision a robust multi-sided distributed marketplace that can host tokens which represent everything of value: physical goods, fundraising and equity, real estate, creative productions such as works of art, music and literature, service leases and time-based rentals, credit, futures, and more.”
The move is likely to provide a welcome respite for investors, many of whom will be buoyed by Circle’s acquisition and the confidence that will instil in those still regarding Crypto as a risky marketplace without a future they can trust in. According to Fortune, the deal has come in at around $400m.
“Circle will immediately begin working alongside the Poloniex team to address customer support and expand operations so that we can continue to scale effectively going forward,” read the Poloniex press release. “We recognize that our extraordinary growth these past few years has not come without some growing pains for our users. We look forward to bringing Circle’s experience to increase the scalability and reliability of our platform and operations.”