Broadridge Financial Solutions can soon offer post-trade services for cryptocurrency after acquiring fintech company Shadow Financial Systems.
The Lake Success, N.Y.-based company, an investor services firm with $4 billion in revenue and a $15 billion market cap, has invested heavily in blockchain projects, but the Shadow deal will be its foray into cryptocurrency.
Broadridge did not disclose the terms of the deal or reveal what parts of post-trade processing for crypto the firm would implement. According to Justin Llewellyn-Jones, head of capital markets for North America at Broadridge, over the next month, the firm will perform due diligence on Shadow Financial to determine what its software can do for crypto post-trade services.
“There are not that many [firms] that want to settle and clear Coinbase trades,” Llewellyn-Jones said. “If we have those capabilities it opens up an interesting arc for us to go forward.”