In a blog post, cryptocurrency exchange Poloniex announced that it is spinning out from Circle into a new company and planning to spend over $100 million to develop this new exchange platform.
Under the new name "Polo Digital Asset," the new platform will not serve U.S. customers. According to the blog post, beginning today, U.S. users will no longer be able to create new accounts on Poloniex. Trading on the exchange will become unavailable to U.S. customers starting Nov. 1.
The exchange said that the separation will "free us to focus on the needs of global crypto traders with new features, assets, and services." Meanwhile, Circle will focus on building its stablecoin business USDC and the equity crowdfunding platform SeedInvest, said Circle co-founders Jeremy Allaire and Sean Neville in a separate blog post.
Circle declined to comment on the specific terms of the spinoff.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.