Kraken Acquires TradeStation Crypto: Expansion in Cryptocurrency Exchange Realm

14 views 2:35 pm 0 Comments May 16, 2024

  • Kraken has purchased TradeStation Crypto to enhance its presence in the U.S. market, expanding its regulatory licensing capabilities.

  • Over the past few years, Florida-based TradeStation Crypto has obtained various regulatory licenses, including money transmitter licenses, in the majority of U.S. states.

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Cryptocurrency exchange Kraken has made headlines with its acquisition of TradeStation Crypto, the digital asset-focused arm of online brokerage TradeStation. This strategic move aims to bolster Kraken’s regulatory standing in the U.S. market.

A spokesperson from Kraken confirmed the acquisition of TradeStation’s crypto business, emphasizing the intent to strengthen Kraken’s presence in the U.S. market and pave the way for new growth opportunities. The financial details of the transaction have not been disclosed to the public.

TradeStation Crypto, headquartered in Florida, has been proactive in securing various regulatory licenses, notably money transmitter licenses, across a wide array of U.S. states in recent years.

Despite its regulatory achievements, TradeStation Crypto faced regulatory challenges, including a $3 million settlement with the U.S. Securities and Exchange Commission related to a lending service. Subsequently, the parent company, TradeStation, announced its exit from the crypto space.

TradeStation Crypto also played a role in materializing Miami Mayor Francis X. Suarez’s vision of establishing Miami as a cryptocurrency hub. Noteworthy among their endeavors was the commissioning of the Miami Bull, an 11-foot, 3,000-pound statue unveiled by Mayor Suarez in early 2022.

Kraken’s expansion efforts extend beyond the U.S., with recent acquisitions in the European Union, such as the purchase of Netherlands-based crypto firm BCM and the acquisition of multiple virtual asset service provider licenses across the region.

This update has been edited by Nick Baker.