Nasdaq has officially announced the acquisition of Cinnober, a company that owns multi-asset trading technology and has been working with cryptocurrencies since 2015.
In particular, Cinnober is working with BitGo to provide a secure, institutional-grade, end-to-end digital asset trading solution.
Cinnober provides solutions and services to trading and clearing venues, including exchanges, clearing houses, banks and brokers.
Cinnober’s clients include the Asia Pacific Exchange, Australian Securities Exchange, B3, Dubai Gold & Commodities Exchange, Euronext, Japan Exchange Group, Johannesburg Stock Exchange, London Metal Exchange, LME Clear, NYSE and the Thailand Stock Exchange.
Nasdaq said the acquisition of Cinnober would strengthen its position as one of the world’s leading providers of infrastructure technologies to the market.
Adena Friedman, President and CEO of Nasdaq, said: “This acquisition will enhance our ability to serve market infrastructure operators worldwide, and will accelerate our ability to expand into new growth segments”.
These statements, combined with Cinnober’s collaboration with BitGo on the institutional investor solution, may suggest that Nasdaq will create its own cryptocurrency exchange dedicated specifically to the institutional investor market, and not to the so-called retail market, at least this has been hypothesized since April.
One of the biggest problems to be solved in order to effectively allow large institutional investors to enter this world in complete safety is that relating to the custody of tokens.
The solution of Cinnober and BitGo would solve this problem and it may be the reason why Nasdaq decided to acquire Cinnober in the first place.
In fact, if they are able to solve one of the main problems for institutional entry, it would have a clear competitive advantage over other similar projects, and they could take advantage of being able to target a large slice of this multi-billion market.