Kraken, a leading digital assets firm and cryptocurrency exchange platform, has announced its acquisition of crypto-enabled staking platform, Staked.
In a press conference it hosted, Kraken announced earlier this week that it had purchased Staked crypto stakers for an undisclosed amount of money. Although the purchase details remain under wraps, Kraken, in its statement, indicated that it cost the exchange quite a fortune when a spokesperson said the acquisition deal could be considered as one of the most significant corporate buys in the crypto industry to date.
Kraken’s Latest Buy
Staked, a crypto-based company specializing in providing cryptocurrency staking services for crypto users, has been acquired by Kraken crypto exchange platform and digital labs.
Staked facilitates staking by providing its users with front-end gateways that enable asses to proof-of-stake (POS) networks.
Kraken, which is one of the world’s largest centralized cryptocurrency exchanges, has added the acquisition of Staked to its catalog of corporate purchases in 2021.
What Is Crypto Staking
Cryptocurrency staking is the act of utilizing one’s funds to actively participate in a blockchain network’s transaction validation process by leveraging proof-of-stake network protocols.
Liquid funds staked by investors can return up to 30% profit per annum, and investors can incur no loss during the process.
The improbability of suffering a loss in the system is because the funds provided by investors are utilized by the Blockchain platforms, effectively making the investor a master node in the blockchain system.
Therefore, as the Blockchain network remains relevant, there will always be returned profit on individual investments, although said profit might vary according to the network’s performance for that year.
Benefits Of The Partnership
Based on the value of crypto assets that it holds, Kraken ranks the fourth in the global ranking systems put up jointly by Bituniverse, Peckshield, Chain.info, and Etherscan.
Kraken currently has a reserve pool home to over 102,000 BTCs and 2.27 million ETH, equivalent to approximately $15.81 billion. The relevant stats were sourced from Coimnmetrics.com.
The resultant coalition with stake aims to see the exchange become a significant player in the staking sector of the crypto industry, which has been gaining increasing traction lately.
The exchange excitedly announced the acquisition through its CEO and co-founder, Jesse Powell. Powell highlights the advantage that the partnership with the staking platform will bring to the company. He said that adopting the staking policies will provide a wider avenue for its global customers and effectively expand the customer base. Customers can choose to actively transact or trade their assets or stake said investments for marginal profit.
The purchase of Staked is now Kraken’s fifth major acquisition in 2021, albeit ones that were made public. According to its annual progress report, Kraken has revealed its trade volume across all trading services it provides grew by over 430% in 2021.
The massive increase in trade volume can partly be attributed to its insightful and relevant acquisitions through the year, which has increased the firm’s relevance in the crypto community globally.