Nasdaq Spinoff Sues Hiive Over Private-Share Patent
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- Nasdaq Private Market filed a patent‑infringement lawsuit against Hiive in the U.S. District Court for Delaware on May 6, alleging violation of its patent for standardizing clearing and settlement of private‑company share transfers.
- Hiive faces a potential U.S. operational shutdown if the suit succeeds, as the court could order it to cease its private‑share trading platform in the United States.
- Sim Desai called the lawsuit “tactical and without merit,” pledging a vigorous defense and urging Canadians to support the platform.
- Hiive processes roughly $300 million in private‑share trades each month, has facilitated over $4 billion total, and reports more than $100 million in annualized revenue.
- Hiive charges transaction fees as a percentage of each trade, with a minimum transaction size of $25,000, and its marketplace is open to accredited investors in Canada and the U.S., and qualified purchasers in the U.S.
Why it matters: Hiive risks losing its U.S. market access, which could cut its $300M monthly trade volume and jeopardize its $100M revenue stream; Nasdaq stands to collect damages and royalties, reinforcing its patent leverage in the private‑share ecosystem.
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