Goldman Sachs backed startup, Circle Internet Financial Ltd. announced on Monday that it has acquired major cryptocurrency exchange Poloniex Inc. Terms of the agreement were not disclosed.
Fortune magazine reported that the deal was approximately $400 million, citing a source familiar with the matter.
“We’re proud to announce that Circle has extended its commitment to a new vision for global finance by acquiring Poloniex, a leading token exchange platform.” wrote founders, Sean Neville and Jeremy Allaire wrote in a blog post.
Circle is a peer-to-peer payments technology company. The company first began as a company revolving around bitcoin, to make it more accessible, but soon after wanted to become a payment solution service.
Circle now operates its own mobile payment platform, Circle Pay, which allows its users to hold, send and receive currencies, and Circle Trade, which allows for over-the-counter trading desk for cryptocurrencies.
Poloniex was founded back in 2013 and developed itself into one of the main cryptocurrency exchanges. The exchange rose quickly in the cryptocurrency world, as it became highly popular and one of the first to hit $1 billion in daily trading volume.
The two want to operate as a major exchange similar to others such as Coinbase that allow for cryptocurrency trading on a larger geographical scale while improving upon operations and continuing to scale forward. Working with Circle, Poloniex wants to explore more options for fiat connectivity across world currencies and extending virtual currency uses, said Poloniex in its statement.
Circle is also backed up other investors including IDG China, Breyer Capital, Accel and General Catalyst, according to Crunchbase.