Nasdaq has stricken a hattrick with its latest move into the crypto market. In a $190 million all-cash deal, the world’s second largest exchange is acquiring the Swedish Cinnober which is in partnership with the qualified crypto custody provider BitGo.
Nasdaq strikes crypto hattrick with Cinnober acquisition
Yet again, Nasdaq has made another crypto score. The world’s second largest stock exchange is making its way deeper into the crypto market. As per the latest announcement, the exchange is in the process of acquiring a Sweden-based trading solution provider, Cinnober.
Cinnober is already into digital assets through its partnership with institutional-grade crypto custody security provider, BitGo. Also, recently BitGo received regulatory approval to be a qualified custodian service provider for about 75 cryptocurrencies to institutional investors.
Cinnober, a major financial technology provider to exchanges, brokers, and clearinghouses globally, has been acquired by Nasdaq in an all-cash deal of $190 million.
Adena Friedman, president, and CEO of Nasdaq stated:
“The combined intellectual capital, technology competence and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.”
Scoring crypto: Nasdaq laying down the plan of domination
Friedman further shares the growth of capital markets and new segments:
“Not only the global capital markets continued to evolve rapidly, but new marketplaces in various industries are also demanding market technology infrastructure that enables rapid growth and scale as well as access to tools to promote market integrity. This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.”
As for Cinnober, according to co-founder of the company, Nils-Robert Persson, this acquisition will further expand its “technology and offering to even more customers and segments.” By the fourth quarter, it is expected the deal will be closed.
Nasdaq has reportedly already made its plans to enter into the crypto world by launching a trading platform in 2019. Moreover, just recently, it came out that the exchange is preparing to add tools to its Analytics Hub in order to predict crypto price movements.
At that time, the head of alternative data at Nasdaq, Bill Dague has stated, “given the abundance of interest, we are exploring cryptocurrency related datasets.” Only to further add, it is yet to be seen if they will launch a crypto product.
Nasdaq is fast pacing into the crypto world by striking a hattrick. And a name like Nasdaq joining crypto market would add legitimacy and competition into this nascent industry while giving the stock exchange the chance to exert its dominance with the best technology, brand value and, a large existing marketplace.