Nasdaq has recently announced its upcoming release of the “world’s first full-stack cryptocurrency ecosystem.” One of the crypto startup Because LLC, which uses Nasdaq trading, clearing and market surveillance technology, expects to launch its spot cryptocurrency market in the first half of 2019. Its application for derivatives exchange is pending for approval with the US Commodity Futures Trading Commission.
The senior vice president and head of a market place of Nasdaq’s, Paul McKeown says,
“Because has methodically built a unique ecosystem that gives investors, partners, and market players a holistic experience in tapping the cryptocurrency market and value chain.”
Because has come up with several features, they are –
- Mining facility
- Spot market
- Regulated derivatives exchange
- Regulated clearinghouse
- Custody operations
Fred Grede, the CEO also mentions that “I fully expect that our market will attract a broad range of users, from those who are already quite active in the financial market and similar with Nasdaq technology to a new breed of investors wanting to participate in growing cryptocurrency market place.”
There were two announcements made one amongst them reads as follows “Once derivative trading and clearing officially commence, Because will be the only way to venue to serve as one-shop stop for all parts of digital currency value chain; from the state of the art digital mining facility launched in February 2018, to spot trading for digital assets , to a future market and derivatives clearing house which are pending regulatory approval” and the surveillance technology powered by Nasdaq is designed to ensure that surveillance protocols fit the need of crypto market place. This will help Because of monitor its market for manipulative activities, amongst other misconduct, thereby creating a safer spot and derivative market for all participants.
According to the above announcement cryptocurrency exchange is aiming to use Nasdaq’s fraud surveillance technology are expected to undergo intense due diligence review. The exchange that passes their assessment is granted access to proprietary technology that Nasdaq uses to monitor traditional stock trading for frauds. Currently, over 50 countries and 250 organizations use Nasdaq’s market technology.
Nasdaq continues to innovate, releasing new products as there was an intense crypto rush with major institutional players including Fidelity Intercontinental Exchange and JP Morgan Chase. Ethereum and Bitcoin liquidity indices went live on Nasdaq last month. It has already on board the BLX and ELX in increase price transparency in the crypto market. In 2017 the Tokyo based SBI group became the lead investor in Because the following series A equity raise last fall acquiring a 40% stake in the company. The strategic partnership is the plan of SBI’s to spur the adoption of crypto all over the world.
And also Japanese SBI group is an investor in both Ripple and R3 and the operator of VCTrade, the world’s first bank owned cryptocurrency exchange.