One of the biggest names when it comes to the world of business and finance, Nasdaq is the 2nd largest stock exchange in the world - with a market cap of $9 Trillion! The CEO of this business giant has now stated that the company is open to the possibility of becoming a cryptocurrency exchange. This statement from Nasdaq CEO Adena Friedman came during an interview with CNBC’s Squawk Box.
However, before any actions can be taken towards implementing this plan, Friedman believes that proper regulations need to be set in place. Once the government finalizes on a set of regulations to govern the cryptocurrency markets - Nasdaq, as well as a number of other institutional investors might explore this possibility further.
"Over time though, if we do look at it and say people are ready for a more regulated market for something that provides a fair experience for investors, certainly Nasdaq would consider becoming a crypto exchange, over time. 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," Friedman said. "Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly, Nasdaq would consider it."
Nasdaq’s entry into the cryptocurrency markets could be disruptive for the existing systems as it is a popular name with a credible record of performance over the years. Nasdaq’s entry into the cryptocurrency scenario, if at all it happens, would be a game-changer - adding a much-needed boost of legitimacy to the crypto-markets.
While Nasdaq isn’t working on any plans on starting off their cryptocurrency exchange at the moment, the company is teaming up with other exchanges. Earlier today, Nasdaq announced that they are working with the Gemini Cryptocurrency exchange.
Understanding the Nasdaq-Gemini Alliance
The Gemini cryptocurrency exchange, owned by the Winklewoss twins, has now tied up with Nasdaq to help them protect the exchange from those who are looking forward to ‘rig the system’. The partnership between the two companies will see Gemini making use of Nasdaq’s SMARTS market surveillance technology - which is an automated system that detects irregular trading.
Gemini has been increasingly working towards expanding its market presence. The exchange made headlines earlier this month when they announced Block Trading on their platform. This partnership between Nasdaq and Gemini is an industry-first and is aimed at making the platform a safer place for the users.
"Since launch, Gemini has aggressively pursued comprehensive compliance and surveillance programs, which we believe betters our exchange and the cryptocurrency industry as a whole," said Tyler Winklevoss, CEO, Gemini. "Our deployment of Nasdaq's SMARTS Market Surveillance will help ensure that Gemini is a rules-based marketplace for all market participants."
Security has become a prime concern of many exchanges. Government agencies too, have been pressing crypto exchanges to ensure that their standards are up to date. This move from the Gemini cryptocurrency exchange is indeed going to make the traders feel a lot safer.