Cinnober came to lime light when it forged a partnership with BitGo, a large institutional custody service provider.
Cinnober, which is bullish on digital assets such as Bitcoin, wants to make investing in cryptocurrencies an easy job. BitGo is also popular for its ability to establish valuable partnerships, which is crucial for its development.
Nasdaq’s interest in Crypto Trading
We had reported that SEC rejected Winklevoss twins’ Bitcoin ETF proposal for the second time in July end. Following this, Nasdaq convened a closed door meeting with industry leaders to discuss the steps that needs to be taken to legitimize crypto and obtain approval from the SEC.
Now, Cinnober’s acquisition indicates that Nasdaq has some credible plan to legitimize cryptocurrencies.
Nasdaq launches public offer to acquire Cinnober: https://t.co/klCKhyhBo6
— Nasdaq (@Nasdaq) September 14, 2018
Regarding the acquisition, Adena Friedman, President and CEO of Nasdaq has stated that Cinnober will bring abundant intellectual capital and technology to Nasdaq.
The rapid expansion of global markets leads to the rise of new market places, leading to an increase in demand for new products. Nasdaq considers the acquisition to play an important role in improving the quality of its products and services.
Cinnober has already built several in-house solutions, making it a suitable acquisition candidate for Nasdaq. The lack of credible, state-of-the-art custodian service is arguably the most important factor that keeps the institutional investors afraid of cryptos.
Mighty US financial institutions such as Citigroup and Bank of America are already exploring the possibility of providing trust worthy custodial solutions. Even with multi-signature wallets and cold storage facility, general public is still uncomfortable dealing with cryptocurrencies mainly due to storage related issues.