Nasdaq Stock Market is the second largest stock exchange by capitalization, but the New York-based exchange seems to be heading towards a new direction.
Just at the turn of the new week, the exchange announced the acquisition of Cinnober. In case you haven’t heard about Cinnober, it is a Fintech firm based in Sweden. The latest purchase of the firm by Nasdaq is eye-catching because Cinnober has recently shown a lot of support for crypto.
In fact, one of the Cinnober’s goal is to make it easier for companies to invest in crypto assets. The company is also directly affiliated with BitGo, an institutional-grade crypto custodian provider that recently got approved by the South Dakota Division of Banking.
So what is Nasdaq doing here?
In a press release confirming the latest acquisition, Nasdaq CEO, Adena Friedman is quoted as saying,
“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.”
Looking on the surface, this claim is very right, but there could be more to it if we consider other involvements of the Nasdaq exchange with crypto assets.
Nasdaq Stealing The Match on Rivals With Regard To Cryptos
As reported by CNBC in April, Nasdaq CEO Friedman made it clear that the exchange will consider becoming a crypto exchange. Insider sources have even claimed that this could happen as soon as next year with BTC and ETH listing among the prime cryptocurrencies to be listed.
Just in the past week, Head of Nasdaq on alternative data, Bill Dague hinted that they are exploring cryptocurrency related datasets, and added: “Whether or not we launch a crypto-related product remains to be seen.” A new tool to be added to the Nasdaq Analytics Hub is rumored to be on the way.
The exchange’s involvement in crypto is likely linked to the fact that the exchange specializes in shares for high tech companies. However, Nasdaq performance in the crypto industry has not been equal to its performance in the traditional finance markets.
Financial Times have it that the exchange’s index has continued to suffer a decline as major tech companies, Apple, Netflix, and Amazon sell-off.
There is a possibility that Nasdaq is already preparing for the future by seeking the front seat within the crypto industry.
The latest acquisition of Cinnober is reportedly in the region of $190 million, a figure that would not be planted by Nasdaq if the expected outcome is not a great harvest.
We can only fold our hands and watch the business play out while also wish the exchange a good time with two lovebirds – Crypto Markets and Traditional Finance Markets.