Crypto exchange giant Kraken has acquired non-custodial staking platform Staked. The acquisition will enable the exchange to offer an alternative to its existing staking service, according to an announcement made by the exchange earlier today.
Kraken referred to the acquisition as “one of the largest crypto industry acquisitions to date.” However, Kraken is yet to disclose the amount that was paid.
To realise just how large the acquisition is, it is worth thinking back to previous crypto acquisitions. In May, Galaxy Digital acquired crypto custodian BitGo for around $1.2nillion. Stake’s non-custodial staking service enables users to earn yield from staking but users won’t have to give up custody of their assets to do so. This compliments the custodial staking service that is already offered by Kraken.
According to Kraken’s CEO, Jesse Powell, “Staked is highly complementary to our existing staking business and will allow us to further strengthen our product offering through world-class infrastructure for clients who prefer to retain custody of their staked assets. We’re excited to welcome Staked’s clients to Kraken and believe that they will benefit from access to our wider portfolio of products as they seek to broaden their engagement with digital assets.”
The acquisition of Staked is Kraken’s fifth this year. The exchange’s staking business has grown by around 950% to almost $16 billion throughout the year, according to the company. “The success of our staking business demonstrates that Kraken has evolved into much more than a custodian and trading venue,” said Powell adding, “We’ve become a holistic crypto platform with a diverse range of products that serves the needs of retail, professional, and institutional clients. Heading into the second decade in our company’s history, I’m excited about the future and Kraken’s continued support of the world’s shift to Web3 and DeFi.”
After the acquisition was finalised, Staked CEO Tim Oglive confirmed that the existing team would continue to play a role in the business under Kraken ownership.
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