By
Godfrey Benjamin
April 12th, 2024
Broadridge Financial Solutions plans to offer post-trade services for cryptocurrency after acquiring fintech company Shadow Financial Systems. The company invested in blockchain projects, but the Shadow deal will be its foray into cryptocurrency.
Broadridge Financial Solutions, a United States-based corporate services company said on Tuesday they are ready to add cryptocurrencies and exchange-traded derivatives capabilities to their offerings. With the acquisition of Shadow Financial Systems, Inc., this service provider that is a famous supplier for public companies that provides them with proxy statements, annual reports and shareholder communications solutions, such as virtual annual meetings – is finally widening its portfolio.
California based fintech company said it is hoping to expand upon its contemporary post-trade processing capabilities. As per their words, the company wants to spread enough to be able to incorporate a market-ready solution for exchanges, brokerships, and exclusive trading companies.
Still, the company didn’t want to disclose all the conditions of the deal, except for the fact that the exclusive advisor for finance and strategy will be global investment banking and asset management company Alantra.
Broadridge, on the other hand, is the company with $4 billion global fintech leadership that is also and a part of the S&P 500 Index. That means that this acquisition represents pretty much a huge deal in the industry.
Co-head of North American Wealth and Capital Markets Solutions for Broadridge, Michael Alexander, commented:
“The acquisition of Shadow Financial Systems is the latest example of Broadridge building upon our industry leading capital markets solutions. We look forward to bringing real benefits to a new set of market participants as well as new capabilities to our existing client base.”
Don Marino, President of Shadow Financial Systems, Inc. added:
“We are excited to join industry leader Broadridge and to better serve our clients’ evolving needs while adding the scale, deep domain expertise and technology resources that Broadridge can provide.”
The company was actually already dealing with some acquisitions in June when it decided to buy RPM Technologies, a Toronto-based provider of enterprise wealth management software solutions and services.
Also, they acquired Dublin-based Rockall, which provides collateral management and securities-based lending (SBL) to financial institutions and are also managing their official reports about technologies from PivotData. PivotData, on the other hand, is a data warehouse company and provider of regulatory technology solutions to the investment management industry, and its partner, Sol Hedge.
In the other news, earlier this year, Broadridge also went on to buying Northern Trust’s blockchain platform for private equity. The company then announced that it was building a blockchain shareholder disclosure platform as a direct response to the European Commission’s amendment to its Shareholder’s Rights Directive.
Justin Llewellyn-Jones, head of capital markets for North America at Broadridge commented that even though Broadridge did not disclose the terms of the deal or reveal any pieces of the post-trade deal, the firm will for sure now have to perform the in-depth investigation on Shadow Financial, in order to determine what its software can do for crypto post-trade services. He noted:
“There are not that many [firms] that want to settle and clear Coinbase trades. If we have those capabilities it opens up an interesting arc for us to go forward.”