Kraken, which is a top 5 exchange with liquidity in excess of $20 million according to CoinMarketCap, has acquired the Circle Trade over the counter (OTC) cryptocurrency trading desk. Kraken says they will improve the OTC desk via deeper liquidity, a bigger variety of global trading partners, and better tools. Apparently, this sale happened because Circle wants to focus on USD Coin (USDC).

Circle was a competitor with Coinbase years ago, being one of the best retail options for buying Bitcoin (BTC) in the United States, and also it had an app called Circle Pay which utilized crypto to send money to family and friends. However, Circle ultimately shutdown its Bitcoin (BTC) buying and selling service for retail customers since it was being victimized by credit/debit card fraud.

After that Circle focused on institutional investors and big money clients via the Circle Trade OTC desk. It was a ‘white glove’ crypto trading service, meaning that it aimed to provide the most professional and efficient service for customers who needed to trade large amounts of crypto.

Circle also acquired Poloniex, which was a popular altcoin exchange, and launched the popular stablecoin USD Coin (USDC).

However, Circle has seemingly been dismantling itself during the latter half of this year. The Circle Pay app was shutdown in September and Poloniex was sold in October, and now Circle has sold off its OTC trading desk too.

The only big thing left for Circle is the USD Coin (USDC) stablecoin, and indeed Circle’s management says they will be focusing on expanding USD Coin (USDC) worldwide and increasing its use cases.

USD Coin (USDC) is currently the 2nd most popular stablecoin with a circulating supply in excess of $470 million. Although this pales in comparison to Tether’s (USDT) circulating supply of over $4.1 billion, USD Coin (USDC) is perhaps the top stablecoin that is officially compliant with United States regulations, and the reserves are stored in United States’ banks. This is unlike Tether (USDT) which has had regulatory trouble and has been accused of running on a fractional reserve.

Therefore, USD Coin (USDC) has the potential to compete with Tether (USDT) and grow in market share, and Circle has essentially been selling off and shutting down their other businesses so that they can focus all efforts and resources on USD Coin (USDC).