<p><span style="font-weight: 400;">Circle, the Boston-based cryptocurrency firm, has sold its once-mighty over-the-counter (OTC) trading (OTC) operation to Kraken. </span></p> <p><span style="font-weight: 400;">Founded in 2013, Circle is one of the earliest players in the digital assets field and its OTC desk was once known as one of the most profitable businesses in the market. Kraken confirmed the sale when reached for comment.</span></p> <p>In a blog post announcing the move, Circle co-founders Jeremy Allaire and Sean Neville wrote that "we have known and admired Jesse and his team at Kraken for many years, and we have every confidence and expectation that Circle Trade customers and partners will continue to find best-in-class OTC liquidity service and responsiveness through Kraken going forward."</p> <p>"Circle Trade represents an enormous success for the industry as well as for Circle, and we’re excited to see Kraken grow it further," they added.</p> <p>The deal shouldn't come as a surprise as Circle has been looking for a buyer for its OTC desk since the summer, according to sources. Nick Gustafson, who has led the OTC desk for Circle since August, previously worked for Kraken.</p> <p><span style="font-weight: 400;">In March, Circle </span><a href="https://www.coindesk.com/crypto-startup-circle-lays-off-30-citing-market-regulatory-conditions"><span style="font-weight: 400;">laid off</span></a><span style="font-weight: 400;"> around 30 employees in its finance department – approximately 10% of its entire staff – which Circle attributed to the challenging regulatory environment in the U.S. Its OTC business also suffered from an </span><a href="https://www.theblockcrypto.com/post/34610/circle-otc-head-departs-firm-following-layoffs-and-departures"><span style="font-weight: 400;">outflow of talent</span></a>, including its<span style="font-weight: 400;"> former head of OTC trading in Hong Kong, </span><a href="https://www.linkedin.com/in/ryansalame/"><span style="font-weight: 400;">Ryan Salame</span></a>.</p> <p><span style="font-weight: 400;">According to an official </span><span style="font-weight: 400;"><a href="https://medium.com/circle-blog/circle-2018-accomplishments-and-2019-themes-a58706d4d33e">blog post</a> published last January</span><span style="font-weight: 400;">, the desk saw a notional volume of $24 billion in 2018. However, the company hit a rough patch in 2019.</span></p> <p>In August, Circle Trade's head Daniel Matuszewski resigned to start his own trading firm with Bobby Cho, who previously led DRW's cryptocurrency trading desk, Cumberland. </p> <p><span style="font-weight: 400;">Then, Poloniex, the cryptocurrency exchange that Circle acquired for $400 million in 2018</span><a href="https://www.theblockcrypto.com/post/43794/circle-spinning-out-poloniex-plans-to-invest-100m-and-not-serve-us-clients"><span style="font-weight: 400;"> spun off </span></a><span style="font-weight: 400;">from its parent company. </span></p> <p><span style="font-weight: 400;">Circle also </span><span style="font-weight: 400;">announced its plans to <a href="https://www.theblockcrypto.com/linked/27149/circle-set-to-shut-down-its-payments-app-looks-to-new-products">shut down</a></span><span style="font-weight: 400;"> one of its payment apps, Circle Pay, in June and </span><a href="https://www.theblockcrypto.com/linked/40933/circle-puts-research-arm-on-pause"><span style="font-weight: 400;">put a pause</span></a><span style="font-weight: 400;"> on its research arm, Circle Research, in September.</span></p> <p>Kraken's OTC operation is led by Nelson Minier, a 20 year veteran of the Wall Street world who joined in 2018. Minier previously held positions at JPMorgan, Credit Suisse and Bear Sterns.</p> <p>As for the future of Circle Trade under Kraken's helm, Kraken said in a statement it will help them capture marketshare in Asia and offer "deeper liquidity and tighter spreads across all supported assets."</p> <p><strong><em>Clarification: </em></strong><em>Gustufson has led Circle's OTC desk since August, and previously worked for Kraken.</em></p> <div class="c-message_actions__container c-message__actions" role="group" aria-label="Message actions"> </div><br /><span class="copyright"><p>© 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.</p> </span>