Mobile Payments App Circle Bought Crypto Exchange Poloniex For $400 Million

There is a big announcement in the crypto waters today. As the multi-currency money sending app Circle announced this morning, they bought the major US-based cryptocurrency exchange Poloniex for $400 million.

The rumors about this acquisition have been present this month all over the crypto news portals. However, now that this is official, we can finally look at how the structure is going to be developed.

As you probably know, the mobile payments app Circle is backed by Goldman Sachs and consists of three main parts:

 

• Circle Pay for fiat transfers
• Circle Trade as the liquidity provider of cryptocurrencies and
• Circle Invest, an app that is upcoming and will allow customers to invest in cryptocurrencies

 

Meanwhile, the Poloniex exchange offers trades on more than 68 different coins. Currently, it ranks #14 on the list of largest crypto exchanges according to CoinMarketCap, trading a total of $140 million so far.

Circle co-founders Sean Neville and Jeremy Allaire wrote that the first step towards embracing Poloniex for Circle is to address the customer support and technical side in order to support the Poloniex platform. On top of that, the co-founders addressed the following:

“We also look forward to scaling Poloniex up and out through market expansion and localization, increasing token listings where possible and appropriate, and exploring the fiat USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products.”

Neville and Allaire also pointed out to growing the Poloniex platform to new heights and transforming it to a “multi-sided distributed marketplace that can host tokens which represent everything of value: physical goods, fundraising, equity, real estate, creative productions, art, music, literature, service leases, time-based rentals etc.”