Goldman Sachs-backed Company Circle Buys Bitcoin Exchange Poloniex
Announced this morning, Circle, a peer-to-peer payment company, has purchased cryptocurrency exchange, Poloniex. Founded by Jeremy Allaire and Sean Neville in 2013, Circle functioned as a platform allowing its users to send, receive and hold fiat currency via their app, Circle Pay. Until the end of 2016, Circle also allowed users to conveniently buy, sell and hold Bitcoin, however had abandoned this feature in order to focus more on combining their payment app with that of traditional messaging services, allowing users to send fiat currency as simply as one would send a message to a contact.
Poloniex is a crypto (digital assets) exchange, focusing on security (though infamously hacked in 2014), and enabling users to keep and exchange only cryptocurrencies, not fiat. To the point, Poloniex ensures that "the vast majority of customer deposits are stored offline in air-gapped cold storage." With this, Poloniex has become one of the top crypto marketplaces worldwide, available to users in over 100 countries. Circle believes that with Poloniex's over $1 billion in daily trade volume, that they'll be a major asset in forming a foundation in an open global token marketplace.
Circle's future goal is to expand on Poloniex's success as a token exchange by incorporating tokens representing varied items of value: