Nasdaq, the second largest stock exchange in the world, announced it’s intentions to acquire Swedish crypto-friendly exchange, Cinnober. Nasdaq has said it will make an all cash recommended public offer for $190 million. This acquisition can mark a major milestone for Nasdaq entering the world of crypto.
Adena Friedman, chief executive of 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.”
Nasdaq’s current market valuation is approximately $10 Trillion. Their size makes their official support for crypto-friendly exchanges significant for the crypto asset class.
Qualified Custodianship Goes Mainstream
Cinnober has been historically bullish on cryptocurrency. Part of their aim is to make it easier for institutional investors to enter the crypto space. Cinnober has partnered with crypto custodian and security giant, BitGo, in an attempt to bridge the legacy and new financial system.
In the press release, Cinnober states that “BitGo’s wallet solution will expand Cinnober’s trading and post-trade platform to provide an end-to-end secure, institutional-grade digital asset exchange solution.” (Source)
Nasdaq’s acquisition of Cinnober may be considered by an indirect show of support for cryptocurrency. However, some economists believe these indirect steps into the industry are a way for mainstream financial houses to gain experience and traction in the cryptocurrency markets for larger footholds in the future.
Recently, the Nasdaq held a closed-door meeting with cryptocurrency experts. In the meeting they discussed ways to legitimize cryptocurrency within the traditional securities product model.
Institutional Investors More Interested in Crypto
Nasdaq’s entree into the crypto space is one more on a growing list, including Goldman Sachs, and JP Morgan. Further, in August 2018, the Intercontinental Exchange (ICE) unveiled plans for Bakkt, a crypto payment system for retailers. ICE is the parent company of the New York Stock Exchange.
The continued courtship between cryptocurrency and mainstream financial companies bodes well for the future of digital assets. As Mike Belshe, BitGo CEO states, “As interest in cryptocurrencies continues to grow and expand beyond the retail market, we will continue to support these exchanges with secure, scalable and flexible technology solutions that can help them manage their growing digital asset portfolios.”