Nasdaq Offers to Acquire Crypto-Friendly Fintech Startup Cinnober for $190 Million

Shannon Stapleton / Reuters
Voyager
Voyager

Nasdaq¬†(NDAQ), the world’s second-largest stock exchange, recently announced¬†that it has offered to acquire Swedish exchange and trading solutions provider Cinnober¬†for $190 million in an all-cash transaction.

According to the announcement, the acquisition of Cinnober would bring an attractive recurring revenue stream to Nasdaq shareholders, in addition to a number of technologies that enhance internal operations and other products. Cinnober provides multi-asset exchange and clearing solutions across the entire transaction chain, including price discovery and market data services.

Notably, Cinnober previously partnered with BitGo, the market leader in institutional-grade cryptocurrency security, to provide solutions to cryptocurrency exchanges. The types of custodial services offered through a well-regarded fintech company like Cinnober could help lessen institutional investor worries over the security of their digital assets.

Cinnober co-founder and largest shareholder Nils-Robert Persson believes the offer makes sense for both companies and intends to accept the offer.

I see the offer as the next step in Cinnober’s development as it will enable Cinnober and its highly talented employees to be even more successful in serving customers as well as expanding its technology and offering to even more customers and segments. I really believe in the strategic logic of combining Cinnober and Nasdaq’s Market Technology business also as it reinforces the strong technology foundation in Sweden.

The news of the acquisition follows a closed-door meeting Nasdaq held with cryptocurrency industry experts. In the meeting, participants discussed ways to legitimize digital assets as a traditional securities product in hopes of appeasing regulators.

Nasdaq also recently revealed that it is considering bringing crypto data to its Analytics Hub, a market research tool that was launched in 2017 to help users parse unstructured data to make informed investment decisions.

More: Nasdaq Press Release

 
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