London Stock Exchange Group (LSEG) has inked a deal to buy a US cloud-based technology provider TORA for $325 million. The main aim of acquiring TORA is to add digital assets to the LSEG trading.
The development comes at the backdrop of an increased interest in cryptocurrencies around the world. LSEG said that acquiring TORA shall assist them in expanding its banking and trading business around the world.
In a nutshell, TORA allows customers to trade multiple asset classes including digital assets, equities, and fixed income across the global markets and especially in Asia and North America. TORA has offices in Hong Kong, Singapore, Tokyo, and New York.
Therefore, TORA offers LSEG the opportunity to become more vocal in the North American and Asian markets.
LSEG head of Trading & Banking Solutions said:
"Acquiring TORA will enable LSEG to deliver critical 'at trade' capabilities for the buy-side."
Major financial institutions angling for digital assets
LSEG move is the latest in the growing trend of major financial institutions angling for digital assets and going for partnerships with digital firms.
In 2019, the LSEG bought a stake in Nivaura, a London-based digital platform behind the world’s first automated crypto-denominated bond issuance.
Kinetic investment firm on the other hand also partnered with TORA in 2018 to launch a crypto trading platform called Caspian to provide a single interface for all major crypto exchanges.
TORA’s Chief Executive Robert Dykes said that its partnership with LSEG would offer a “powerful toolkit” by bringing together TORA’s trading solutions with LSEG’s analytics and data products.