Acquiring Crypto-Friendly Swedish Exchange, Nasdaq Signals More Crypto Involvement

Sep 18, 2018, 8:00AM
1 min, 22 sec READ

If completed, this move could open a path for Nasdaq's expansion into the cutting edge of fintech and blockchain technology

Nasdaq, the owner of the second largest stock exchange in the world, is expanding its position in the fintech sector through the acquisition of Cinnober, a crypto-friendly Sweedish firm that specializes in trading solutions and clearing technology for market operators, clearinghouses, banks, and brokerages.

The Nils-Robert Persson, Cinnober's main shareholder, intends to accept the deal, and if completed, the sale will be valued at around $190 million. This move could open the door for Nasdaq's expansion into the cutting edge of fintech and blockchain technology.

Setting the Stage for an Expansion into Crypto?

While Cinnober isn't directly related to the cryptocurrency sector, there are some synergies, and the acquisition could help make Nasdaq a bigger player in the industry. 

Cinnober is partnered with BitGo, a firm specializing in institutional-level cryptocurrency custody security, and its business as a trading solutions provider is highly relevant to the sector, especially at a time when Wall Street is expanding its presence through cryptocurrency-based derivative securities that trade like mainstream assets. 

According to Adena Friedman, Nasdaq's Cheif Executive, 

This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.

Nasdaq is not the only major U.S. stock exchange exploring a possible expansion into blockchain technology and cryptocurrency. Earlier this year, Intercontinental Exchange, the owner of the New York Stock Exchange, announced plans to launch Bakkt, a fully-regulated Bitcoin market that will feature a daily clearing futures contract. 

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.