The acquisition is Kraken’s fifth this year and, according to the company, has contributed to a 950 percent growth so far this year.
Cryptocurrency exchange Kraken announced on Tuesday that it has completed the acquisition of Staked, a U.S.-based non-custodial crypto staking platform. While the company did not disclose detailed financial terms, it described the deal as “one of the largest acquisitions in the crypto industry to date.”
With this new acquisition, Kraken plans to expand its support for proof-of-stake networks and to deliver new, innovative products to customers on its platform.
Staked’s team will remain on board
Staked’s CEO Tim Ogilvie and his entire team will continue working as part of the company after the acquisition. Kraken’s CEO and co-founder Jesse Powell commented on the deal and expressed his enthusiasm. He characterized Staked as one of the most notable yield products in the market, having attracted significant backing from large crypto investors.
Powell welcomed Staked’s customers to their new home and explained that Staked represents a highly complementary addition to Kraken’s business model. As such, it will help the exchange strengthen its product offering for customers who wish to retain custody of their assets while earning rewards.
“We’re excited to welcome Staked’s customers to Kraken and believe they will benefit from our broader product suite as they seek to deepen their engagement with digital assets.”
Staked provides non-custodial staking services that enable users to earn yield on crypto holdings without necessarily relinquishing control of their assets. Its integration complements Kraken’s custody capabilities. In addition, Staked will join an exchange with world-class infrastructure designed to optimize the user experience and reduce significant access barriers.
Kraken has expanded its crypto ecosystem
Kraken’s staking business has grown substantially this year, expanding by more than 950 percent through November. The exchange reported $16 billion in staked assets and distributed over $500 million in staking rewards to customers.
Kraken’s acquisitions and investments have played a major role in that growth. Over the past few years the company has added businesses such as Bit Trade, Circle Trade, CryptoFacilities, CryptoWatch and other crypto firms to its portfolio. Powell noted that this acquisition is the company’s fifth this year and said Kraken’s offerings have evolved beyond custody and trading services.
“We have become a comprehensive crypto platform with a diverse product suite that serves retail, professional and institutional customers. As we move into the second decade of our company’s history, I’m excited about the future and Kraken’s ongoing support for the world’s transition to Web3 and DeFi.”