With its latest move, Nasdaq takes another step further into the cryptosphere. In a $190 million deal, all cash, the world’s second largest exchange purchased the Swedish Cinnober which is in partnership with the qualified crypto custody provider BitGo.
This means that Nasdaq went one step deeper in the market with its latest announcement.
Cinnober is already into digital assets via its partnership with institutional-grade crypto custody security provider BitGo as we said above. BitGo has recently received regulatory approval to be a qualified custodian service provider for around 75 cryptos to institutional investors.
Cinnober is an essential financial technology provider for exchanges, brokers, and clearinghouses on a global scale and Nasdaq acquired it for $190 million.
Expanding the growing division at Nasdaq
Adena Friedman, president, and CEO of Nasdaq said the following: “The combined intellectual capital, technical competence, and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq.”
Friedman continued and explained more about 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.”
Nasdaq will reportedly launch a crypto platform in 2019
Nasdaq has reportedly already made plans to enter the crypto space a while ago by launching a trading platform sometime during the next year.
There are also rumors suggesting that Nasdaq is preparing to add tools to its Analytics Hub in order to predict crypto price movements.
It’s important to acknowledge that a name like Nasdaq’s joining the crypto market would only add enhanced legitimacy and competition into the industry while giving the stock exchange a chance to exert its dominance with the best possible technology, brand value, and a large marketplace.