Multi-trillion dollar stock exchange Nasdaq is reportedly considering launching a cryptocurrency exchange.
The news came from a TV interview with Nasdaq CEO Adena Friedman, held on American news channel CNBC earlier this week. She revealed that whilst plans were not currently in motion for an exchange, Nasdaq are currently “providing technology now to other crypto exchanges” - referencing the company’s work with the Gemeni platform. The technology referenced is a piece of surveillance software that monitors trading to ensure a fair and “rules-based marketplace”.
The Nasdaq exchange - the second largest in the world, would according to Friedman seek to provide a regulated market for cryptocurrency trading. Alongside improved security, the firm also believes it would be able to provide greater trading liquidity than current platforms. Liquidity has been a long-standing issue for cryptocurrency traders, and is widely believed to be partly responsible for the incredibly volatile cryptocurrency prices. With Nasdaq's £9 trillion of volume available to improve cryptocurrency markets, the move would be welcomed by many in the crypto space.
In the interview, Friedman expressed a firm belief that cryptocurrencies are here to stay – a bullish signal from one of Wall Streets most significant figures. However, the platform is currently waiting for a clear regulatory framework to be established before entering the market fully.
"I believe that digital currencies will continue to persist it's just a matter of how long it will take for that space to mature...Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly Nasdaq would consider it."
Friedman’s comments are a sure sign of the progress digital currencies are making. Last year the total market capitalization of all virtual currencies rose to over seven hundred billion dollars, before falling to nearly half that in a spectacular crash. Some had feared this could be the end for digital currencies, but Friedman’s comments show that big players in the financial world understand that cryptocurrencies are here to stay.
As time progresses and cryptocurrencies and regulations develop, it seems that institutional players such as Nasdaq are guaranteed to step up to the table - digital currencies are growing far too large to ignore.
