Circle Buys Poloniex | Could it be the Bitcoin Bank of the Future?

Circle Buys Poloniex | Could it be the Bitcoin Bank of the Future?

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Financial services firm Circle have today announced that they are purchasing cryptocurrency trading platform Poloniex.

Though price details were not included in Circle’s official statement, a Fortune report puts the cost at a whopping $400 million. It also raises Circle’s profile as a cryptocurrency exchange, putting it on the heels of leading platforms Coinbase, Bittrex, and Kraken.

Backed by venture capital firms and investors such as Goldman Sachs, Circle is a peer-to-peer payment app which aims to make money transfers as simple and informal as sending a text or e-mail. Using blockchain technology, Circle is ‘on a mission to change the global economy’ by focusing on safe and free money transactions.

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In an interview with Reuters, Circle CEO Jeremy Allaire said that he has ‘been really impressed‘ with Poloniex, nothing that ‘they defined what originally people thought of as ‘altcoin’ exchanges‘. Commenting on the acquisition, Circle said in a statement that:

We believe that the contractual rules around exchange for anything and everything will become increasingly represeted in distributed global software, rely on inconvertible distributed shared memory in the form of distributed ledgers, and benefit from the services of global multidimensional marketplaces such as Circle Poloniex.

The value of cryptocurrencies is fluctuating wildly (they were worth $800 Billion USD in January before falling to $450 Billion now) and regulatory bodies are scrutinizing alt-coin ICOs. So it is reasonable to think that such a large investment made by Circle is a bit of a gamble. In addition, a Reuters investigation last September revealed that Poloniex allowed users to trade in up to $2000 of Bitcoin a day by giving very little and sometimes even false information about themselves. However, Circle’s long-term vision sees a wider, safer and more stable market in which digital currencies are more than just something to invest in. They expect an exchange where crypto tokens represent physical goods, credit, rentals, real estate and more. Plus, Circle already has an established history of crypto trading with their Circle Trade platform which apparently trades over $2B a month in Over-the-Counter digital currency exchanges.

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So what changes can current Poloniex users expect to see now? Happily, not much. Circle seems to be content with ‘maintaining the features and services that have made Poloniex so familiar and relied upon’ by its users, noting that most of the changes made in the short-term will be behind-the-scenes.

So whether you’re a Poloniex user, crypto enthusiast or potential investor, there may be exciting times ahead.

Also read: Payment app Square adds Bitcoin support to their person-to-person fund transfer platform Square Cash.

Featured image: crypto-news.net

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Ed Browne is a content writer currently living in Vancouver, Canada. He currently writes on the subject of business and finance but has previous experience in human interest articles as well as music reporting. Ed is originally from the UK and spent most of his time working in pubs and bars before graduating and entering a journalistic field.
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About Jenny

Molly Jane is a Russian Literature major from California with a background in writing. She joins CurrencyTimes after working as a freelance journalist and blogger.

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