Nasdaq to Acquire Cinnober: Is the Stock-Exchange Preparing for Cryptocurrency?
Nasdaq announced Friday that it is in the midst of acquiring Swedish trading solutions provider Cinnober. So why is it important for crypto-enthusiasts that Nasdaq acquiring Cinnober might happen? Well, Nasdaq is Nasdaq—the second-largest stock exchange in the world, but Cinnober is known for its acceptance of digital assets and its involvement in helping institutions to invest in them.
So you can see the potential excitement here if Nasdaq is taking over this company. Is Nasdaq preparing for crypto-trading on its exchange?
The anticipation across the industry for a Bitcoin ETF has been continually marred by the SEC’s rejection of upwards of nine applications for one. Citing market volatility, the lack of support for cryptos as securities and their vulnerability to “fraudulent and manipulative acts and practices,” the SEC has rejected multiple applications for a Bitcoin ETF. Applications have come in from major crypto influencers including Gemini Founders the Winklevoss twins.
However, Nasdaq’s acquisition is hinting again at the exchange’s openness to cryptocurrency trading. Recently, it held a meeting with cryptocurrency industry expert to discuss ways in which cryptocurrencies could be considered a traditional securities product in the eyes of the SEC.
Cinnober has a history of crypto bullishness. As stated, the company helps big-time investors to invest in digital assets. But the most exciting aspect of Cinnober is its partnership with BitGo. BitGo is a giant for top-level cryptocurrency custody security.
As such, the BitGo platform is well-suited for the large institutional investors involved in Nasdaq. The reason is the multi-signature security and custody solution with BitGo.
Nasdaq’s President and CEO Adena Friedman said the following in a release:
“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.”
Bitcoin exchanges have been hacked on multiple occasions, and the unease of large institutions towards supporting them is understandable. It would take a body such as the Nasdaq to truly legitimize digital assets in the eyes of bigger institutions and encourage even wider adoption.
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