The Nasdaq, the world’s second-largest stock exchange, is reportedly working towards launching its own cryptocurrency exchange to support its trading. Reports have indicated that the Nasdaq does not plan to list Bitcoin (BTC) futures like its competitors, CME and CBOE. Instead, the stock exchange company has decided to list and start trading actual digital currencies.
The listing by the Nasdaq is likely to bring on board many institutional investors. The move can also shed light coming from the potential approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC). The SEC has previously rejected more than 10 applications for Bitcoin ETFs stating that the market was not yet ready.
Sources familiar with the matter informed us that the exchange is working closely with regulators. In a note they explained that,
“The talk linking NASDAQ to the listing of digital currencies is true and they are currently engaging regulators. The leadership of the exchange has been working closely with SEC and CFTC. If approved, the company is expected to start trading in the coming year because it has already set up the framework.”
Association with Gemini
The Nasdaq has been doing a lot of research on digital currencies. The exchange had however not stated any plans for listing digital currencies. In the past, insiders have reported that the exchange has a very close relationship with the Gemini cryptocurrency exchange. Nonetheless, Nasdaq has always been silent about its movements into the new technology.
Sources indicated that Gemini had doubled its staff because of the work it has been conducting with the Nasdaq. It has also been said that the Nasdaq wants to work with Gemini for the cryptocurrency exchange to provide the listing technology. The management is however yet to state its stand on the rumors. The listing would be huge news for the cryptocurrency investors. With the Nasdaq having a massive following, this would be a monumental boost for the cryptocurrency industry.
Many stock exchange companies around the world are working to integrate blockchain technology into their platforms. With blockchain technology being the underlying technology of digital currencies, exchanges are likely to expose their clients to the sector. This will be a big move for the sector which is desperately trying to emerge on the mainstream stage.
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