Crypto Exchange Kraken has recently acquired Interchange, an accounting and portfolio settlement service provider for institutional cryptocurrency investors.
According to the press release on July 31, the acquisition helps in Kraken’s development of an end-to-end crypto trading and reconciliation platform.
According to the press release highlights, Interchange is popular due to its founders Dan Held, previous director of wallet provider Blockchain and co-founder of ZeroBlock and Clark Moody, who is the founder of the Blockchain acquired Bitcoin trading platform RTBTC.
Interchange currently provides a way to institutional investors such as hedge funds and asset managers & fund administrators to manage their portfolios.
Kraken’s recent acquisition targets to offer institutional investors better tools to track and report their crypto holdings and optimize their portfolios.
As per the press release, more than 60 clients across the globe are using Interchange’s software along with MG Stover, which is the world’s largest fund administrator for digital fund assets.
Kraken has observed a 3X growth rate in institutional clients every year since 2014 and will merge Interchange’s tools with the existing platform, Cryptowatch which offers multi-exchange, charting, trading, and portfolio-tracking service.
The combined tools from both Interchange and Cryptowatch will provide institutional clients products along with historical and current data, advanced charting, multi-exchange trade executions, research and market insights, crucial accounting and portfolio reconciliation tools, and crypto indices.
Kraken CEO, Jesse Powell stated:
“I couldn’t be more excited to welcome Dan, Clark and the Interchange team to Kraken. What’s great about Interchange is that it makes accounting, trade reconciliation and reporting so much easier for institutions and individuals trading on Kraken, so our clients can stay focused on tapping the tremendous value that cryptocurrency markets offer.”
In the recent interview with Kraken, which is released on its blog on July 31, Dan Held and Clark Moody presented their point of view about the development of the institutional crypto investment.
Held, who is working in the crypto industry for the last 7 years, said that after the effect of 2017 initial coin offerings rage, crypto hedge funds have to shift their focus and “deepen their understanding of Bitcoin and blockchain fundamentals.”
“Many learned a hard lesson regarding diversification in an asset class that is highly correlated. The hedge funds that have survived the crypto winter are now more mature, sophisticated and process heavy,” he added.
Moody stated that the funds are exploring various strategies and allocation approaches, urged by a need to find a space in the 24x7 global market. He believed that as more capital flows in from the huge institutional players, the crypto market will see a host of new products, along with advanced derivatives.