Kraken Acquires Capitalise.ai for Automated Trading Tech

Kraken has acquired the assets and technology of Capitalise.ai, a company that developed natural language trading automation technology. 

The acquisition will bring no-code trading capabilities to Kraken Pro users across multiple asset classes.

Founded in 2015, Capitalise.ai built a platform that converts text instructions into executable trading strategies. 

The company's proprietary language model processes real-time and historical data across equities, cryptocurrency, foreign exchange, futures and options markets. Financial terms of the transaction were not disclosed.

A phased rollout of Capitalise.ai's functionality within Kraken Pro is expected to begin later this year. 

The technology will enable users to design, test and automate trading strategies without coding requirements.

Natural language removes technical barriers

The acquisition addresses complexity issues that have emerged as Kraken Pro has evolved. Making full use of the platform's features increasingly requires technical skill and deep trading expertise, creating barriers for some users.

Capitalise.ai removes that barrier by enabling clients of all backgrounds to design, test and automate complex strategies using simple, everyday language. 

Users will be able to automate strategies across digital and traditional asset classes without writing code.

Shannon Kurtas, Kraken Head of Exchange, says the acquisition provides clients with new real-time capabilities. 

“This acquisition gives Kraken Pro clients a powerful new way to act on ideas in real time: testing, optimising and executing bespoke strategies with unprecedented speed and confidence,” she says.

Proven technology joins Kraken scale

Capitalise.ai technology has been deployed by traditional finance brokers and exchanges with what Kraken describes as compelling results. The company claims it ranks among the most engaging automation tools in the retail and institutional space.

The acquisition includes key personnel from Capitalise.ai. CEO Amir Shiovich and Chief Product Officer Shahar Rabin will join Kraken along with product and engineering staff. The team will continue development work within Kraken's Pro business unit.

The deal follows Kraken's US$1.5bn acquisition of US futures platform NinjaTrader in March, signalling the exchange's expansion beyond cryptocurrency into traditional financial markets.

The transaction reflects broader trends in the cryptocurrency industry, where companies are increasingly acquiring artificial intelligence startups. 

In January, blockchain analytics firm Chainalysis acquired fraud detection startup Alterya for approximately US$150m. The same month, Web3 platform xPortal purchased German AI startup Alphalink.

In August, Tether and video platform Rumble announced a joint US$1.17bn bid for Northern Data, an AI and high-performance computing provider. Bitcoin miner MARA Holdings struck a US$168m deal to acquire a stake in French AI firm Exaion on the same day.

Capitalise.ai demonstrated its technology at FinovateSpring 2017 in San Francisco, where it won Best of Show. The company showed how its platform could translate financial, social and weather data into investment ideas across multiple asset classes.

Kraken supports more than 15 million clients across 190 countries and processes more than US$207bn in quarterly trading volume. The exchange has positioned itself as a multi-asset platform enabling trading across digital and traditional financial instruments.

Keefe, Bruyette & Woods, a Stifel company, acted as financial adviser to Capitalise.ai in the transaction.

“Capitalise.ai's technology transforms how people interact with financial data, breaking down barriers that have long kept scalable, advanced strategies in the hands of a few. This is a major leap forward in democratising access to pro-grade trading tools,” Kurtas says.