In a significant strategic move, Kraken has acquired Israeli AI startup Capitalise.ai, marking another major step in the cryptocurrency industry’s aggressive push into artificial intelligence. This acquisition represents the growing trend of crypto companies buying AI startups to enhance their technological capabilities.
Kraken’s Strategic AI Startup Acquisition
Kraken recently completed its acquisition of Capitalise.ai, an Israel-based no-code trading automation platform. Consequently, this move will integrate natural-language trading capabilities into Kraken Pro. The technology converts everyday text commands into executable trading strategies. Moreover, it supports execution across multiple markets including equities, crypto, and foreign exchange.
Expanding Trading Capabilities Through AI
The integration will enable Kraken Pro users to design, backtest, and automate trades without coding knowledge. Additionally, this acquisition follows Kraken’s recent $1.5 billion purchase of NinjaTrader. Furthermore, the system aims to make advanced strategies accessible to broader user bases.
Crypto Industry’s AI Startup Buying Spree
Major crypto companies are actively acquiring AI startups to strengthen their positions. For instance:
• Chainalysis acquired Alterya for $150 million in January
• xPortal purchased German AI specialist Alphalink
• Tether and Rumble made a $1.17 billion joint bid for Northern Data
• MARA Holdings acquired 64% of French AI firm Exaion for $168 million
Partnership Strategies in AI Integration
Some companies prefer partnerships over acquisitions. Specifically, Coinbase partnered with Perplexity AI to integrate crypto data into AI responses. This approach demonstrates alternative strategies for leveraging artificial intelligence technology.
Future Implications for Crypto and AI
The trend of crypto companies buying AI startups shows no signs of slowing. These acquisitions enhance trading, compliance, and infrastructure capabilities. Ultimately, they position cryptocurrency firms at the forefront of financial technology innovation.
Frequently Asked Questions
What does Capitalise.ai bring to Kraken?
Capitalise.ai provides natural-language trading automation technology that converts text commands into executable strategies across multiple markets.
Why are crypto companies buying AI startups?
Crypto companies acquire AI startups to enhance trading algorithms, improve compliance systems, and strengthen their technological infrastructure.
How much did Kraken pay for Capitalise.ai?
The acquisition amount remains undisclosed, following Kraken’s recent pattern of strategic investments in technology companies.
What markets does Capitalise.ai support?
The platform supports equities, cryptocurrency, foreign exchange markets, futures, and options trading automation.
Are there alternatives to acquiring AI startups?
Yes, some companies like Coinbase choose partnership models instead of acquisitions to integrate AI capabilities.
When will Kraken Pro integrate the new technology?
Kraken plans to integrate Capitalise.ai’s technology into Kraken Pro later this year, according to their August announcement.
