Acquisition Marks Broadridge Financial's First Foray Into Crypto Services

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.

Shadow Financial is a provider of multi-asset-class solutions based in Piscataway, N.J. It offers post-trade software for exchanges, inter-dealer brokers, broker-dealers, agency brokers and proprietary trading firms.

In August 2018, Shadow Financial announced its support of cryptocurrencies in ShadowSuite, the firm's reconciliation, clearance, settlement, treasury and accounting system.

In the blockchain space, Broadridge has participated in blockchain pilots focused on proxy.

Still, this is the first Broadridge investment to dabble in cryptocurrency itself.

Northern Trust's blockchain platform for private equity.

In response to the European Commission's amendment to its Shareholder's Rights Directive, Broadridge announced.