On September 18, 2018, the world’s second-largest stock exchange, Nasdaq, acquired a pro-crypto Swedish fintech, Cinnober for $190 million. Nasdaq expects to close this deal by the fourth quarter, with Cinnober shares rising 27 percent after the announcement. This latest acquisition highlights Nasdaq’s growing interest in the cryptocurrency market and trading. One of the Wall Street mega players, Nasdaq is now closely following its peers, trying and finding numerous ways in entering the cryptocurrency parade, instead of missing out on all the action.
The Swedish Fintech clientele includes some of the biggest exchanges across the globe. The Asia Pacific Exchange, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group and the London Metal Exchange are some of the exchanges Cinnober caters to with its remarkable solutions. Cinnober’s multi-dimensional asset class exchange and clearing solutions comprise of the entire transaction chain – starting from price discovery and order matching to clearing and settlement, and trade monitoring. Cinnober also delivers systems for pre- and post-trade risk management, control, index calculation, and market data services, which can operate independently or as an integrated solution of Cinnober’s trading and clearing solutions.
Earlier this year, Cinnober has also partnered BitGo, providing an unparalleled trading solution for the institutional investors. BitGo is one of the leading digital asset custodians, even offering an enterprise-grade BTC wallet.
Nasdaq CEO, Adena Friedman, stated that “The combined intellectual capital, technological competence, and capabilities of Cinnober and our Market Technology business will expand the breadth and depth of our fastest growing division at Nasdaq. This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments.“
CCinnober stakeholders are now hopeful with the acquisition emerging as a ray of sunshine. The company was almost reaching its breaking point during the last couple of years, losing some of its primary clients and with disappointing profitability after revising its payment plans.
The shares fell by over 40 percent last year, and Cinnober reported a loss of $11.5 million. Chief executive Veronica Augustsson was succeeded by Peter Lenardos, a former Managing Director, Bank of Canada, to assist the firm out of these sticky situations. Now under the guidance of Nasdaq, the company seems to be off with a fresh start towards delivering success to its clients.