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Kraken Stirs the US Crypto Waters With TradeStation Takeover

Kraken acquires TradeStation's crypto business to grow the presence in the United States 

In a strategic move to bolster its regulatory framework and expand its market reach in the United States, cryptocurrency exchange Kraken has acquired TradeStation Crypto.

Key takeaways:

  • Kraken acquires TradeStation Crypto to enhance its U.S. regulatory licensing.
  • The deal includes the takeover of various state-level licenses and sets the stage for new product launches in the U.S.
  • TradeStation Crypto had previously settled a regulatory issue with the SEC for $3 million.

Kraken has officially confirmed the acquisition of TradeStation Crypto, the digital assets division of online brokerage firm TradeStation, as part of its strategic efforts to deepen its regulatory and market presence across the United States. 

A Kraken spokesperson stated via email:

"We can confirm Kraken has recently purchased TradeStation's crypto business. 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," 

This acquisition marks the first public disclosure of the takeover, with Kraken declining to reveal the financial terms of the deal. TradeStation Crypto, based in Florida, has over the years secured a variety of money transmitter and other regulatory licenses across most U.S. states, enhancing Kraken’s licensing framework significantly.

Despite its regulatory accomplishments, TradeStation Crypto recently settled a dispute with the U.S. Securities and Exchange Commission, paying $3 million over issues related to a crypto lending service. Following this, the parent company announced its intention to exit the cryptocurrency sector.

TradeStation Crypto also gained attention for its efforts to support Miami Mayor Francis X. Suarez's vision of transforming Miami into a crypto hub. Notably, in early 2022, the company commissioned the Miami Bull, an 11-foot, 3,000-pound statue, unveiled by Mayor Suarez, symbolizing the city’s vibrant crypto culture.

Additionally, Kraken is not limiting its expansion to the U.S. alone; it has also been extending its reach within the European Union. Recent developments include the acquisition of Netherlands-based crypto firm BCM and securing several virtual asset service provider licenses throughout Europe.