Kraken has purchased the token management platform Magna, the crypto exchange announced on Wednesday. Kraken declined to disclose the terms of the acquisition, which closed on Friday. It’s the exchange’s sixth deal over the past year, including its $1.5 billion purchase of the U.S. futures platform NinjaTrader in March.
Magna helps crypto companies manage the distribution of their cryptocurrencies. When crypto startups raise money from venture capitalists, they often promise investors a tranche of tokens, much like traditional startups give VCs equity. As the list of recipients grows, it grows more complicated to keep track of who owns what, especially once the tokens are trading live. That’s why companies turn to Magna, Arjun Sethi, co-CEO of Kraken, told Fortune.
