“We’re thrilled to welcome the Poloniex team and customers.”
Today, February 26th, 2018, the cryptocurrency exchange Poloniex was acquired by Circle, a company that, among other services, provides instant money transfers over a chat-like interface. Circle stated in its blog post that it had been considering this acquisition for a few months.
What does this mean for Poloniex?
Circle’s blog post indicated that it intended to fix customer support issues, and otherwise help Poloniex with load issues.
“you can expect Circle to address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform”…“When growing pains mean that onboarding takes extended time for someone, or information about the availability of wallets is lacking for a customer with funds in those wallets”
Poloniex as a fiat exchange?
“[E]xploring the fiat USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products”
The blog post also stated that Circle was looking into having Poloniex offer fiat trading pairs. There was no commitment made to that end.
If Poloniex does get some fiat trading pairs, it would become more ubiquitous among traders, as it would remove a step to trading between cryptocurrencies and fiat.
What does Circle get from this?
While not expressly indicated in the article, one could infer that Circle intends to bring cryptocurrency based transfers to its chat platform. Another possible benefit includes allowing its users to convert crypto on the fly when paying someone. Either way, this would be a very intriguing development in the cryptocurrency/fiat exchange world.
“In the coming years, we expect to grow the Poloniex platform beyond its current incarnation as an exchange for only crypto assets.”
Circle appears to be aiming to expand its enterprise into other types of exchanges. Real estate, credit, and futures were among the mentioned types. What this means for Poloniex as an exchange is unclear, only time will tell.