Nasdaq Technology To Power Crypto Firm’s Trading And Mining
Nasdaq has licensed its exchange technology to crypto-focused Bcause LLC, allowing the company to use the U.S. stock exchange’s technology to operate various markets within its ecosystem.
Bcause is a firm that launched its services in 2013 and describes itself as a “full-stack cryptocurrency ecosystem,” and hopes to become a leading provider of crypto-related services and tools.
The firm announced on Wednesday that it will now use Nasdaq’s tools including the matching engine and market surveillance.
The company will utilize these tools to be leveraging the Nasdaq Financial Framework to operate its spot crypto market, expected to go live in a few months.
On top of that, Bcause is eyeing an approval that will see it operate as a designated contract market, for which it has filed an application with the relevant regulatory authorities.
Also importantly, the firm has said that it will soon be launching its derivatives clearing organization (DCO), pending registration by the U.S. commodities market regulator CFTC.
According to a statement published by the company, Bcause wants to become a “one-stop shop,” the first and currently only one to offer spot trading and operate a crypto mining facility.
Bcause will also launch a futures clearinghouse once it receives regulatory approval.
Nasdaq’s senior VP Paul McKeown, who also heads the firm’s Marketplace Operators and New Markets division, lauded the firm’s “unique ecosystem,” that accords a holistic experience to its partners, investors, and other industry players as they tap into the crypto and value chain ecosystem.
According to McKeown, the Nasdaq Financial Framework will allow Bcause to leverage the “scalability and modular functionality” provided by the exchange to launch new micro-services. It also gives the company a great chance of expanding its business offerings.
Similar sentiments came from the CEO of Bcause LLC Fred Grede, who said that their company felt “honored” for the opportunity to use NASDAQ’s technology in rolling out its next services.
A statement from the firm notes that using the stock market giant’s surveillance technology will help it to screen incidences of potential market manipulation among other illegal activities. That means added protection to its spot and derivatives markets users.
Grede also hopes the move to use Nasdaq’s tech will see more people look to use its platform, both those within the traditional financial market as well as those new to the market but interested in the crypto market.
Nasdaq is increasingly dabbling into crypto and blockchain and is expected to launch its Bitcoin futures product later this year. CEO Adena Friedman has also forecast that BTC could become a global currency.
Other stock market operators have also been busy with efforts related to the cryptocurrency and blockchain space, including NYSE owner Intercontinental Exchange (ICE) and the SIX Swiss Exchange.
In January, the London Stock Exchange Group (LSEG) revealed that its matching engine technology would be used to power a new Hong Kong-based exchange called AAX.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.