Kraken Exchange to Supply Market Data for Bitcoin Price Indices

News and Analysis

Kraken, San Francisco-based cryptocurrency exchange in Euro volume and liquidity, has announced on May 3, 2016, that it was selected as a key supplier of market data for reference and real-time bitcoin price indices that will be launched by CME Group, joint operator of the S&P 500 and Dow Jones Industrial Average and one of the world’s largest options and futures exchanges.

CME Group intends to launch so-called CME CF Bitcoin Reference Rate (BRR) and the CME CF Bitcoin Real Time Index (RTI) in Q4, which indicates expansion of cryptocurrency acceptance in derivative markets. The RTI index will reflect global buy/sell demand for bitcoin taken from a consolidated order book. Current price of bitcoin will be updated once every second.

Kraken’s CEO, Jesse Powell, said in a statement:

“We are proud to provide accurate, reliable, real-time data for the world’s leading derivatives marketplace. It is critical for traders to have a fully credible and reliable reference rate source around the clock, and Kraken is proud to provide our data.”

The move further signifies investment and business expansion of Kraken. This April, it announced it had raised significant funds during Series B investment round from a Japan-based currency brokerage company Money Partners Group. Parties did not disclose details of the deal, so the exact amount of the investment is unknown. Earlier thus January, Kraken acquired New York-based exchange Coinsetter and Canada-based platform CAVirtex. Back then, Kraken claimed the merger one of the biggest in bitcoin’s history. A short while later, a new multimillion deal was announced – this time it involved SBI Investment, a major venture investment company that had secured the California-based exchange’s second investment round. SBI Investment is the investment wing of SBI Holdings, a major Japanese financial conglomerate handling the operating income of around $570 million with operating revenue in excess of $2 billion in 2015 alone.

“It’s a fantastic first step toward completing Series B, which will ultimately enable us to scale our business worldwide. Kraken will be prepared to meet the fast-increasing demands of an emerging ecosystem of blockchain-enabled assets,” Jesse Powell stated back then.

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