Crypto Facilities

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Crypto Facilities
Crypto Facilities(1).png
Headquarters London, United Kingdom
Products Cryptocurrency trading platform, futures trading, and index calculation
Twitter @cryptofltd

The Crypto Facilities Group is a group of companies owned by Payward Inc., the owner of Kraken.

Index calculations

Crypto Facilities administers and calculates the bitcoin and Ether price indexes for a number of financial institutions, including the CME Group.[1] CME Group announced on May 2, 2016, that it would include bitcoin prices from ItBit trading in its daily Bitcoin Reference Rate as well as its Real Time Index.[2] In a notice on its website on July 5, 2019, CME Group said that it was including itBit's Ether prices in the indexes calculated by Crypto Facilities.[3]

Kraken Futures

In what Kraken said was a purchase for "nine figures" on February 4, 2019, the company acquired U.K.-based Crypto Facilities. Crypto Facilities offers trading in cryptocurrency pairs as well as leveraged contracts, which it characterizes as "futures." Crypto Facilities also provides data and index services to the CME Group, Inc. in connection with the CME's bitcoin futures contract and its Ether index.[4] In an indication that the deal had been underway for some time, Powell told Fortune that the companies had already integrated their back-end operations of Crypto Facilities allowing customers of both companies to trade on a single platform. The transaction was approved by the Crypto Facilities' regulator, the U.K. Financial Conduct Authority (FCA). Powell also said that the purchase had been funded from Kraken's own resources.[5]

Following the acquisition, Kraken renamed the business "Kraken Futures." Kraken announced on March 25, 2019 that customers of its platform would be able to engage in both spot and futures trading. It also said Kraken users will be able to trade these contracts leveraged up to 50x, giving them the ability to profit in both bull and bear markets.[6][7]

Kraken Futures is not available to U.S. residents.[8]

According to Kevin Beardsley, head of business development at Kraken Futures, the platform provides its traders with rebates of 30 percent of the fees it collects.[9]

In a November 2019-dated blog post, Kraken announced that it was launching futures market development efforts in Russia including hiring Aleksey Bragin as a representative in the country.[10]

In March 2019, Crypto Facilities told Cointelegraph that its trading volumes increased by 500 percent after being acquired by Kraken.[11]

Crypto Facilities received a license from the U.K. FCA on July 6, 2020 to operate Kraken Futures as a multilateral trading facility (MTF), letting the platform attract trading from businesses whose own rules restrict them to trading on regulated entities. Despite the U.K.'s January 2020 exit from the E.U., the platform's registration is valid throughout the E.U. at least until the end of the year. Crypto Facilities is the first cryptocurrency trading platform to receive a MTF license in the U.K. or E.U.[12]

References