Media reports say that the U.S.-based Nasdaq stock exchange may be weighing the option of launching into the cryptocurrency space. Indeed, the news has hit the headlines with an inside source speaking on the condition of anonymity. The source noted that Nasdaq plans to make a grand entry into the digital asset landscape with cryptocurrency security tokens.
Nasdaq Is Already in Talks with a Partner
According to the reports making the rounds, Nasdaq’s plan to build a cryptocurrency-enabled platform for companies to launch their security tokens is in the pipeline. The report also likened the security token offering to the crowdsale of regulated ICO tokens. In addition, it noted that the U.S. exchange is already in talks with Symbiont, an institutional blockchain-based solution with a focus on startups. When the platform finally launches, it would issue and trade digital currency security token, the insider disclosed.
Nasdaq Has Always Had Interest in Cryptocurrency
Nasdaq’s interest in security token dates back to 2015 when it teamed up with a financial service blockchain builder, Chain.com. Essentially, the two firms worked collaboratively to conduct the first-ever private security issuance based on blockchain technology. If the stock exchange successfully launches its platform, it would become the latest entrant in the burgeoning cryptocurrency ecosystem. Before now, similar companies, such as tZero and Polymath, have already made their forays into the industry. If Nasdaq joins them, this will become a natural progression in its quest to branch out to the new asset class.
Waiting for Regulatory Settlement
Earlier in the year, CEO Adena Friedman gave a clue that the stock exchange is interested in expanding into digital assets. In truth, Friedman disclosed that the Nasdaq would consider building a crypto-exchange once the regulatory framework becomes more mature. In an article published on Nasdaq website in 2018, said cryptocurrency sits somewhere between venture capital and blockchain. Indeed, the piece argued that virtual currencies serve as the “bridge between traditional finance and the blockchain.” In the article that appears to be making a case for cryptocurrency, it highlighted the gains of the new asset class. In addition, the well-crafted epistle pointed out that venture capital and blockchain benefit from cryptocurrency.
Definition of Securities
For enthusiasts and pundits, the debate on the definition of cryptocurrency continues. While the U.S. SEC insists that cryptocurrencies are securities, cryptocurrency issuers disagree, claiming to issue utility tokens. It is noteworthy to state that security tokens as representative of real-world assets eliminate regulatory obstacles inherent in utility tokens. Similarly, blockchain platforms enable investors to trade a wide range of assets, equity, real estate, and debt. Therefore, Nasdaq would be a natural fit in the sector.
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