Poloniex, a digital asset trading service that allows cryptocurrency-to-cryptocurrency exchanges, has merged with Circle, a fintech startup that makes products using blockchain technology. (For more, see What is Poloniex?)

The Goldman Sachs-backed Circle acquired Poloniex in a deal reportedly worth $400 million. The immediate focus of the two teams will be on effective scaling of their respective operations, and they will work together to address customer-support issues and operations expansion.

While the merger of a leading token exchange service provider with a blockchain technology company opens up new avenues, Poloniex remains committed to retaining the existing features and functionality as available to users through its platform.

It has promised that only changes to existing offerings will be the usual feature updates, bug fixes, enhanced user experience, improved performance, and stronger security. Such enhancements will remain transparent to all the users, and they will continue to enjoy safe and secure access to the functions on the Poloniex platform as is.

Crypto Asset Investment App

Circle has described the Poloniex acquisition as an extension of their continued “commitment to a new vision for global finance.”

Circle has successful applications in its existing product portfolio. They include Circle Pay, which is a peer-to-peer money transfer app that uses blockchain technology to enable free transactions among individuals, and Circle Trade, which serves large investors and institutions by enabling necessary liquidity between cryptocurrency and fiat currencies.

The company is optimistic about its forthcoming app called Circle Invest, which is aimed at facilitating crypto asset investment by an individual through the tap of a button on their mobile devices.

By acquiring Poloniex, Circle aims to improve on the efforts of market expansion, localization, and increasing cryptocurrency listings. It will also explore marrying its expertise of fiat currency connectivity (USD, EUR, and GBP) to Poloniex offerings.

In the long run, the joint team will work towards building a “robust multi-sided distributed marketplace that can host tokens which represent everything of value: physical goods, fundraising and equity, real estate, creative productions such as works of art, music and literature, service leases and time-based rentals, credit, futures, and more.” (For more, see What Is Circle X and Why Should Cryptocurrency Exchange Coinbase be Worried? )

Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns no cryptocurrencies.

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