Goldman’s $50 million investment is being put into good use as Circle has bought out crypto exchange Poloniex. Announced on Monday, the price paid for the exchange tops $400 millions, as Circle aims to grow the exchange platform.
Circle also used to be one of the biggest US bitcoin wallets but decided to withdraw the service in December 2016. Being the first company to gain a “BitLicense” in New York and even approved by the UK, the exchange made headlines for gaining government approval in its markets. The exchange has since moved on from bitcoin but still develops frequently using blockchain technology to fuel its remittance services.
The startup aims to help Poloniex also move into a similar territory as the cash injection aims to steer the exchange into fiat territory in the near future. The founders pf Circle also revealed their vision for the future of crypto as they aim to push tokens not only as mere currency, but also as a token. Everything from physical goods to digital services can one day be incorporated into current crypto tech. Circle believes the potential for crypto technology remains limitless.
“We recognize that our extraordinary growth these past few years has not come without some growing pains for our users. We look forward to bringing Circle’s experience to increase the scalability and reliability of our platform and operations.”
The Poloniex team
To conclude, we may see the rise of Poloniex as funding for the platform increases. The exchange has reassured its current customers that on the service end there will be no disruptions. Being one of the biggest deals this year, the $400 million investment reinforces the payment processors confidence in the future of crypto. Being no stranger to crypto, Circle may be looking to get back into crypto amid a unfortunate departure in 2016.