Topic: [2018-09-17]Nasdaq is Acquiring Crypto-Friendly Swedish Exchange (Read 92 times)

With so many potential products in the pipeline -- Citi's DARs, the ETFs, BAKKT, Bank of America moving into cryptocurrency custody, and now Nasdaq entering the fray -- it's obvious there's going to be a regulated Bitcoin securities market.

This acquisition sounds promising, though I'm sure it'll be a while before we see anything approved and launched.

CCN

Nasdaq, the world’s second-largest stock exchange, announced Friday that it is in the works to acquire Cinnober, a trading solution provider based in Sweden.

Cinnober has a history for bullishness towards digital assets and making it easier for institutions to invest in them. One of those efforts is the partnership with BitGo, a behemoth for institutional-grade cryptocurrency custody security. BitGo itself has built partnerships and acquisitions over its history, which have helped it firm up its mission, including the acquisition of Kingdom Trust and a partnership with the South Korea exchange Korbit.

Nasdaq: More Prepping for Cryptocurrency Trading?
Nasdaq’s latest acquisition highlights, though indirectly in this case, its taste for cryptocurrency trading. As CCN reported, on the heels of the SEC’s second rejection for the Winklevoss twins’ ETF, the Nasdaq held a closed-door meeting with cryptocurrency industry experts. In the meeting, participants discussed ways to legitimize cryptocurrencies as a traditional securities product, especially in ways to appease the fickle SEC.

Cinnober’s BitGo platform is well-suited for large institutional investors in Nasdaq. The multi-signature security and custody solution with BitGo has made it one of the most popular in the space. Nasdaq’s release points to their interest in Cinnober’s success in offering newer asset types. Adena Friedman, President and CEO, Nasdaq, said:

“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. Not only have the global capital markets continued to evolve rapidly, new marketplaces in various industries are 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.”

Cinnober has developed in-house solutions and technology acquisitions that make it a prime candidate for the tech-heavy Nasdaq Corporation. Cinnober’s cryptocurrency custodian service, in specific, could be one of the most coveted arms of the acquisition, as questions over custodianship have made many institutional investors leery.

Household names in finance are racing to developer regulated and clearly audited custodian solutions, including Citigroup and Bank of America.