Nasdaq has recently announced that their highly-anticipated full-stack cryptocurrency ecosystem will be launching in the first half of 2019. This ecosystem of crypto-related products and services will be the world’s first. Bcasue LLC, a crypto startup collaborating with Nasdaq, is using the company’s trading, market surveillance, and clearing technology to develop its spot crypto market. Bcause’s application for a derivatives exchange with the US Commodity Futures and Trading Commission (CFTC) is pending approval.
Nasdaq’s senior vice president and head of the market place Paul McKeown said in a statement, “Bcause has methodically built a unique ecosystem that gives investors, partners, and market players a holistic experience in tapping the cryptocurrency market and value chain.” Among the several features being developed by Bcause, the top ones include a spot market, mining facilities, a regulated clearing house, a regulated derivatives exchange, and custody operations.
CEO of Bcause LLC Fred Grede says, “I fully expect that our markets will attract a broad range of users, from those who are already quite active in the financial markets and familiar with Nasdaq technology to a new breed of investors wanting to participate in the growing cryptocurrency marketplace.”
The official states, “Once derivatives trading and clearing officially commence, Bcause will be the only venue to serve as a one-stop shop for all parts of the 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 futures market and derivatives clearinghouse which are pending regulatory approval.”
On the usage of Nasdaq’s proprietary technologies, Bcause LLC’s announcement says, “The surveillance technology powered by Nasdaq is designed to ensure that surveillance protocols fit the needs of a crypto marketplace. This will help Bcause monitor its markets for manipulative activities, among other misconduct, thereby creating a safer spot and derivatives market for all participants.”
Being able to partner with Nasdaq and utilize the giant stock exchange’s fraud surveillance technology is no small feat for a crypto startup like Bcause LLC. Companies that want to use this technology have to go through intense due diligence reviews and multiple investigations before being granted access. Exchanges that pass the intense assessment are given access to Nasdaq’s proprietary market surveillance technology that the stock exchange uses to monitor stock trading volumes for potential frauds. Over 250 companies from over 50 countries currently use Nasdaq’s unparalleled technologies.
The interest towards cryptocurrencies is increasing in major institutional businesses including Fidelity, JP Morgan Chase, and Intercontinental Exchange along with Nasdaq. Each of these giants is either exploring the options or have started developing blockchain-based infrastructures. Nasdaq has continuously innovating itself as well as the products, services, and business it is involved with.
Nasdaq launched Bitcoin and Ethereum liquidity indices on the stock exchange last month. The liquidity index went live a week after the company announced that it would be adding new indices to its data suite.