UK financial markets’ leading infrastructure – London Stock Exchange Group – will acquire trading technology solutions provider TORA for USD 325 million. The initiative aims to strengthen LSEG’s presence in the cryptocurrency sector.
London Stock Exchange plunges deeper
According to a recent announcement, the London Stock Exchange Group will pay US$325 million in a cash transaction to acquire TORA. Upon completion of the agreement, the latter will become part of LSEG’s Data and Analytics division as part of its Trading and Banking Solutions business.
The acquisition will allow LSEG to expand its presence in the digital assets sector. “Combining TORA’s international presence with LSEG’s global reach will further drive growth, and we look forward to collaborating to continue that expansion,” said Dean Berry – a senior executive at the exchange.
The agreement will also help LSEG to extend not only to Europe, but also to North America and Asia, where the majority of TORA’s customers are based.
The fintech company’s CEO – Robert Dykes – said his company “couldn’t have asked for a better partner than LSEG”. He opined that the best features of the two entities could create “the most advanced trading solutions for clients”.
The London Stock Exchange Group entered the world of digital assets in 2019. At that time, it bought a stake in London-based Nivaura – a company that seeks to digitize primary markets using blockchain technology.
In 2018, TORA teamed up with investment firm Kenetic to launch its cryptocurrency trading platform Caspian. It provides a single interface to many of the top digital asset trading venues.
London should focus on cryptocurrencies
British authorities, and especially Bank of England executives, are among the biggest opponents of the cryptocurrency industry. Jon Cunliffe – deputy governor of the institution – recently stated that the sector could jeopardize the country’s financial stability.
Andrew Bailey – Governor of the Bank of England – went further, expressing concern about El Salvador’s decision to make bitcoin a legal tender. “What I would be most concerned about is whether the citizens of El Salvador understand the nature and volatility of the currency they own,” he said.
However, former British Chancellor Philip Hammond is not among those critics. Not long ago, he urged UK authorities to take the cryptocurrency industry seriously, which would secure London’s monetary position in the post-Brexit period.
He warned that ignoring the asset class is not wise, as many European countries have started to adopt it. Otherwise, the UK risks being overtaken by its competitors, Hammond concluded.
Featured Image Courtesy of StockNews24
SPECIAL OFFER (sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to receive up to $7,000 on your deposits.