Nasdaq has been quite pro-cryptocurrency exchanges in its attitude in the recent past, and with time, this outlook seems to be broadening. The company’s CEO, Adena Friedman had once stated that as the cryptocurrency space matures and the regulation is smoothed out, Nasdaq too would consider becoming a crypto exchange. It displayed its pro-crypto exchange attitude by extending its support to existing exchanges and announcing a technology deal with Gemini in April.
The company shared an announcement on April 25 that it would be collaborating with the Winklevoss Twins’ crypto exchange, Gemini. As part of this deal, Gemini was given access to Nasdaq’s surveillance technology in order to ensure that the platform provides a fair and rules-based marketplace for its investors.
A key hurdle for other institutional investors and the Nasdaq is regulation. Friedman stated that regulation needs to be ironed out before Nasdaq decides to add an exchange. The company has of late been eying a deeper entry into the crypto market space by offering its market policing know-how to selected cryptocurrency exchanges.
The international markets maker, Nasdaq is apparently looking to increase the usage of the tools that it had designed to police its existing securities and financial markets in the cryptocurrency exchange business.
An internal research paper written by Nasdaq’s staff states that the company feels that it can apply the tools that it has created to detect unusual trading and fraudulent activities, to eradicate some of the malpractices that allegedly blight the crypto world, as reported on CryptoNewsReview.
However, according to Nasdaq’s head of exchange and regulator surveillance, Tony Sio, the company won’t work with all of the firms vying to apply its services. The reason being, a lot of them are quite at an early stage or are not reputable yet. While Friedman seemed quite optimistic about the future of cryptocurrencies, she was less so in terms of initial coin offerings (ICOs), as reported on CNBC.
Nasdaq had been quite consistent in its pro-cryptocurrency exchange outlook over the last year. It had made some significant moves to the crypto space in the last couple of months by providing the back-end technology for DX.Exchange, a Europe-based firm. Apart from this, there were persistent rumors in the market that Nasdaq will begin to list cryptocurrencies itself, in some form, in 2019.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]