The 14th largest crypto exchange, Poloniex, has reportedly been scooped up by Goldman Sachs backed fintech start-up Circle. According to the reports, the $ 400 million acquisition makes it one of the largest in the industry.
This deal is made significant by more than just the amount of money, but also the fact that, Lloyd Blankfein, Goldman Sachs CEO has on a few occasions been critical of cryptocurrencies. Yet the company he leads now, albeit indirectly, owns a stake in a cryptocurrency exchange and an institutional cryptocurrency trading desk.
This could be an indication that the older institutions are starting to loosen up about cryptocurrencies and might start associating with companies rooted in blockchain and altcoins. For Poloniex, this is a chance for what was once the largest exchange to regain its former glory.
This is what the Circle team had to say:
“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. More on these efforts to come.”
This means that under the umbrella of Circle, Poloniex is looking to provide a more efficient trading platform with adequate liquidity. While targeting the same market as Binance is not going to be easy for them, the addition of fiat pairs to their platform will go a long way for Poloniex. For the Circle team, acquiring Poloniex is just the beginning. There are plans to develop a decentralized marketplace for physical goods, assets, and other commodities.
If successfully implemented, Circle’s plans could be appealing to a larger market interested in an exchange that supports both fiat and tokens, allowing them to buy altcoins in fiat and hedging them against fiat currencies.