Kraken's acquisition of OTC giant expands its OTC Trading business scale.

The encryption exchange Kraken recently announced the acquisition of a well-known OTC Trading service provider. This strategic acquisition will significantly expand Kraken's OTC business scale, increasing its operational team to more than 20 people. Notably, Kraken's OTC Trading business will be led by Wall Street veteran Nelson Minier.

Industry sources indicate that the acquired OTC platform has been seeking buyers since the summer of this year. The platform achieved a nominal trading volume of $24 billion in 2018, demonstrating strong market performance. However, in March of this year, the company's financial department laid off about 30 employees, approximately 10% of its total workforce, due to challenges posed by the U.S. regulatory environment. Additionally, the company's OTC business is facing talent retention issues, with several key personnel, including its former OTC director, having left.

It is worth noting that the company that was acquired has recently taken a series of business adjustment measures. It has successively suspended the operations of its research department and the services of a payment application. In addition, the company acquired one of the world's largest digital currency exchanges at a high price of $400 million in early 2018. However, in October of this year, the exchange announced its spin-off from the parent company, with operations taken over by an Asian company.

This series of changes reflects that the cryptocurrency industry is undergoing profound transformation. As market competition intensifies and the regulatory environment continues to evolve, merger and acquisition activities among enterprises may further increase. Kraken's recent acquisition will undoubtedly enhance its competitiveness in the OTC market, but effectively integrating the newly acquired business and maintaining growth in a complex market environment will be significant challenges it faces.