Cinnober has its ties with the industrial grade cryptocurrency custody security company, BitGo. This opens Nasdaq’s doors to expansion and also into the cutting technology required for the financial industry and blockchain technology.
In the words of Adena Friedman, president, and CEO of Nasdaq;
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.
Not only have 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 is said to enhance the ability to serve market infrastructure operators worldwide. Also, on the other side, it will accelerate and expand the new growth segments.
What does this mean for Nasdaq?
As reported, after the acquisition of Cinnober, Nasdaq will get the cryptocurrency custodianship. This will further solidify the company to set up shop in crypto trading. The custodianship is a huge concern for institutions. This doesn’t seem like a shock, because there has been hack relating number of exchanges.
However, Cinnober acquisition will put Nasdaq ahead to build and launch world’s reliable public trading cryptocurrency exchange.
The acquisition of Cinnober will deliver a 10% ROIC within 3-5 years for Nasdaq.
Nasdaq acknowledges acquiring all the Cinnober shares and warrants at a price of SEK 75 per share & SEK 85 per warrant. This transaction represents an offer value of SEK 1702 million $190 million
Nasdaq and Cinnober
Nasdaq is the second largest American stock exchange in the world, located in New York. The electronic stock market technology currently being used by 250 market infrastructure organizations and individuals was created by Nasdaq. The company has an approximate of 4000 listings with a market value of approximately $14 trillion USD
Headquartering in Stockholm, Sweden, Cinnober is the company focusing to develop trades and identify new technology trends. However, Cinnober’s solutions are largely based on the TRADExpress™ Platform.
Moreover, the trading behemoth, Nasdaq has real plans to set its foot into the crypto world. Imagine the possibilities and the new trading tech that will be an outcome of this acquisition.
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