Nasdaq Adapts Cryptocurrency Technology for Institutional-Grade Platform
Nasdaq Inc. is repurposing its cryptocurrency technology to create a comprehensive institutional-grade platform for various asset markets, including digital assets and carbon trading. This move follows the suspension of Nasdaq’s U.S. cryptocurrency custodian business launch in July.
Technology for Tokenized Assets
In an interview with Bloomberg Television, Nasdaq co-president Tal Cohen revealed plans to introduce this technology as a comprehensive service. The aim is to provide an institutional-grade platform that supports digital assets and markets like carbon trading.
Mainstream Financial Institutions Reassessing Involvement in Digital Assets
This shift by Nasdaq comes as mainstream financial institutions, including Nasdaq itself, reevaluate their participation in digital assets due to increasing regulatory scrutiny. Despite stepping back from direct involvement in cryptocurrency-related businesses, Nasdaq remains committed to developing technology for managing crypto assets on behalf of clients.
Aligning with Broader Market Trends
Nasdaq’s decision aligns with broader trends in financial markets, where U.K.-based firms like Arm Holdings are increasingly choosing U.S. markets, particularly Nasdaq, for significant public offerings. This was evident in one of the largest share sales of 2023.
Collaboration with European Lawmakers
Tal Cohen expressed Nasdaq’s willingness to collaborate with European lawmakers and address challenges such as complex tax regimes and regulations. He advocated for changes that would make Europe more attractive for listings.
Hot Take: Nasdaq Repurposes Cryptocurrency Technology for Institutional-Grade Platform
Nasdaq is adapting its previously developed cryptocurrency technology to create an institutional-grade platform for various asset markets, including digital assets and carbon trading. This strategic move comes as mainstream financial institutions reassess their involvement in digital assets due to regulatory scrutiny. Despite stepping back from direct engagement in cryptocurrency-related businesses, Nasdaq remains focused on developing technology to manage crypto assets for clients. By repurposing its cryptocurrency technology, Nasdaq aims to provide a comprehensive service that supports digital assets and markets like carbon trading. This decision aligns with broader market trends, as seen with U.K.-based firms choosing Nasdaq for significant public offerings. Nasdaq is also ready to collaborate with European lawmakers and advocate for changes that enhance Europe’s appeal for listings.
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