Exclusive: Kraken’s Cyprus Move—PU Prime-Linked CFDs Firm Revealed as Acquisition Target

Kraken revealed its acquisition of a Cyprus firm last February to obtain a Markets in Financial Instruments Directive (MiFID) licence in the European Union. Finance Magnates has learned that the crypto exchange acquired contracts for differences (CFDs) provider Greenfields Wealth, formerly Pacific Union Group (rebranded as PU Prime outside Cyprus).

However, the financial terms linked to the deal remain unknown.

A PU Prime-Linked Broker

Originating in Australia, PU Prime operates with multiple offshore and onshore licences. Finance Magnates recently reported that it acquired the Australian operations of Estonian CFDs broker Admirals. PU Prime is also licensed in Mauritius, Seychelles, and South Africa.

Previously known as Pacific Union, the platform was rebranded as PU Prime in early 2021. According to Web Archive, the Cyprus-based Pacific Union Group and the offshore Pacific Union used the same branding. However, despite the similarities in branding, the operations of the two units were distinct.

Later, the Cyprus unit was rebranded as Greenfields Wealth with a different branding and name, which also offered CFDs.

Cyprus: Gateway to the EU

Meanwhile, Kraken’s acquisition of Greenfields Wealth has provided it with a Cyprus Investment Firm (CIF) licence. Under this licence, the crypto exchange can offer over-the-counter derivatives, even to retail clients across the European Economic Area (EEA).

However, Kraken did not clarify the types of derivative products it would offer its European clients, although it is likely that the exchange will offer crypto perpetual contracts.

“As we continue to expand our services across the globe, our focus on the European market remains a top priority,” said Shannon Kurtas, Kraken Co-GM of Pro & Exchange.

Kraken is not the only crypto giant that has acquired a Cyprus entity for pan-European access. Finance Magnates earlier reported that Coinbase quietly acquired the Cyprus unit of BUX, which offered CFDs under the brand Stryk. While there is no official confirmation from the crypto exchange, Coinbase appears to be planning to target professional and institutional clients with its offerings under the Cyprus licence, based on its regulatory-approved website.