Exchange of cryptocurrencies Kraken has announced the acquisition of Stack LLC, a noncustodial staking service provider.

Although the purchase price was not revealed, Kraken branded it as one of the most significant cryptocurrency sector purchases to date.

Staked was founded in 2018 to enable investors to make a return from staking without giving up control of their crypto holdings. The service is marketed to institutional investors as running the most secure, performant, and cost-effective block production nodes for decentralized point of sale protocols.

As per the business, Staked leverages multitier signing and listening node architecture to provide stakeholders with security, scalability, and decentralization. The service, which is utilized by major projects, investment funds, exchanges, custodians, and wallets, provides a highly available architecture that uses Kubernetes to spread over five clouds with automatic failover.

With support for over 30 assets and 15 more on the way, the firm claims to offer the largest asset coverage. Stacked claims that their system maximizes rewards depending on each chain or product supporter’s specific dynamics. All staking, Defi lending, and reporting capabilities are accessible through an application programming interface, making integration simple.

Pantera Capital, Galaxy Digital Partners LLC, Coinbase Ventures, Winklevoss Capital Management LLC, CosenSys Software Inc., Digital Currency Group Inc., Celsius Lending LLC, Signia Venture Partners, and other prominent digital currency firms are among Stack’s clients.

By extending the number of supported networks and offering a noncustodial option to Kraken’s current custodial staking service, the purchase is believed to reinforce Kraken’s position as a leading supplier of staking services to consumers and institutions.

“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,” stated Jesse Powell, Kraken’s co-founder and CEO.

Kraken’s sixth purchase in 2021 is Staked. Spot, margin, and trade volumes have increased by more than 430 percent this year, while Kraken’s current staking business has grown by more than 950 percent to roughly $16 billion in November.

As per Crunchbase, Staked had received $4.5 million in venture capital investment before its purchase. GlobalBrain, Fabric Ventures, Coinbase Ventures, 9Yards Capital, Pantera Capital, Visary Capital, and Blocktree Capital are investors.


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