Kraken Acquires the Crypto Division of TradeStation

Kraken, one of the largest cryptocurrency exchange platforms globally has announced the acquisition of the cryptocurrency division of online brokerage platform, TradeStation.

Kraken has shared minimal details about this acquisition deal. However, it will allow the cryptocurrency exchange to expand its operations across the United States.

Kraken Acquires TradeStation

The acquisition of TradeStation by Kraken is part of a push by the exchange to broaden its services across the US. The exchange has been looking to expand its market reach across some of the most competitive markets including the US and Europe.

While commenting on this acquisition, the company said that the purchase of the crypto business of TradeStation was already complete.

“The transaction is part of our efforts to accelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken in the U.S,” Kraken said.

TradeStation Crypto is a major player in the industry. The platform holds a money transmitter license across 47 states. The acquisition is strategic for Kraken as cryptocurrency exchanges operating within the US are required to have a money transmitter license for every state where they want to operate.

TradeStation has previously had issues with the US Securities and Exchange Commission (SEC) over its lending service. The SEC accused the platform of offering crypto lending products classified as unregistered securities. The broker had to make a $3 million settlement and also announced it would withdraw from the crypto industry.

Before the tussle with the SEC, TradeStation played a major role in influencing Mayor Francis Suarez’s bid to transform the city into a crypto hub. TradeStation Crypto also commissioned the Miami Bull statue launched by Suarez.

Kraken has also been in a tussle with the US securities regulator. The SEC accused Kraken of operating an unregistered securities brokerage platform. It also accused the exchange of commingling customer funds.

Kraken’s Expansion Plans

Kraken is a US-based exchange, with its headquarters in San Francisco. The exchange is now working on expanding its operations in the US and globally.

The exchange secured several licenses in Europe including from Ireland and Spain. It also announced the acquisition of BCM, a cryptocurrency exchange based in the Netherlands towards the end of last year to expand its operations across Europe.

Kraken is also expanding the services available to users. it recently released a self-custodial cryptocurrency wallet seeking to support those who want to self-custody their digital assets. It also comes with a dedicated platform for institutional clients. Its custodial solutions are also useful to those who want to store digital assets.