By
- Move would create more competition for Coinbase and others
- Startup Circle has raised at least $136 million in funding
Circle Internet Financial Ltd., a closely held cryptocurrency-focused financial-services firm backed by Goldman Sachs Group Inc., said it acquired Poloniex Inc., a digital-token exchange.
Terms of the agreement weren’t disclosed. Fortune magazine reported earlier that the deal was for about $400 million, citing an unnamed person familiar with the transaction. Poloniex says on its website that the company was formed in January 2014 and is based in the U.S.
“We are excited to work with Circle to localize our product in more geographies, to explore options for fiat connectivity across major world currencies, and to continue providing our users with access to innovative token projects that extend cryptocurrency protocols to new use cases,” Poloniex said in a statement.
The combined companies will compete with large digital wallets and exchanges such as Coinbase Inc. The agreement comes as startups and corporations alike are trying to figure out whether to wade into cryptocurrencies. While many have been involved in blockchain for years, there has been more hesitancy around what to do with digital assets like Bitcoin due to volatility and a history of it being used in shady transactions like drugs and evading taxes.
Circle has raised nearly $140 million in funding from Goldman, General Catalyst and IDG Capital Partners, according to Crunchbase. Poloniex hasn’t disclosed any fundingfrom venture capitalists or large institutions.
