Kraken, a prominent cryptocurrency exchange, has taken a significant step to enhance its footprint in the U.S. market by acquiring TradeStation Crypto, the cryptocurrency-focused division of online brokerage TradeStation.
This strategic move was reported by Coindesk as part of Kraken’s broader efforts to solidify its presence across the United States.
While the acquisition has been confirmed by both parties, specific details such as the closing date and financial terms of the deal have not been disclosed.
“We can confirm Kraken has recently purchased TradeStation’s crypto business,” a Kraken spokesperson stated in an email to a crypto-focused publication.
They elaborated, “This transaction is part of our efforts to accelerate our US presence and will support further growth and new product opportunities for Kraken in the US.”
TradeStation Crypto, based in Florida, is a key player in the crypto exchange sector with money transmitter licenses in 47 states, Washington DC, and Puerto Rico.
These licenses, listed in the Financial Crimes Enforcement Center’s database, are essential for legally operating crypto exchange and registrar businesses in compliance with federal laws.
Kraken’s headquarters are in San Francisco, and the exchange is actively pursuing growth opportunities both within the U.S. and internationally.
In Europe, it has recently secured several regulatory approvals, including licenses in Spain and Ireland.
Additionally, Kraken acquired BCM, a Dutch crypto exchange, to bolster its European market presence.
Further expanding its services, Kraken has launched a self-custodial cryptocurrency wallet and continues to offer a specialized platform for institutional clients, which includes custodial solutions.
However, the expansion comes amidst regulatory challenges.
The U.S. securities regulator has accused Kraken of operating an unregistered securities exchange, broker, dealer, and clearing agency.
The allegations also include the mishandling of customers’ funds by mixing them with the exchange’s own assets.
TradeStation Crypto has also faced its regulatory hurdles.
Earlier in the year, it settled with the Securities and Exchange Commission for $1.5 million due to its involvement in offering crypto lending products, which were deemed unregistered securities.
This acquisition by Kraken marks a critical juncture as both companies navigate the complex regulatory environment surrounding cryptocurrency operations.