Broadridge likely to offer crypto post-trade services following Shadow Financial Systems' acquisition

Broadridge Financial Solutions Inc. has acquired a New Jersey-based fintech firm Shadow Financial Systems for an undisclosed amount.

Shadow is a multi-asset class post-trade solution provider for the capital markets industry. Following the acquisition, Broadridge could soon offer cryptocurrency and exchange-traded derivatives (ETD) on its platform.

“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,” Michael Alexander, Co-Head of North American Wealth and Capital Markets Solutions for Broadridge, said.

Meanwhile, Don Marino, President of Shadow, expressed his excitement over the new deal. He hopes that the move will allow the firm to cater to the evolving needs of its clients “while adding the scale, deep domain expertise and technology resources that Broadridge can provide.”

According to CoinDesk, Broadridge refused to detail the terms of the deal and specify what parts of post-trade processing for crypto it will implement. However, the report said that the firm will conduct due diligence on Shadow to find out how its software can help the crypto post-trade services.

“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,” Justin Llewellyn-Jones said as quoted by the news outlet.

The acquisition follows after financial services giant Northern Trust has partnered with Broadridge last June to transfer its distributed ledger technology platform for private equity (PE) asset servicing, which offers real-time insight and transparency to all parties including the fund managers and investors as well as allowing regulatory access if necessary.

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