Nasdaq Licenses Tech To New Cryptocurrency Trading Platform
(Source: forbes.com)

clicks | 8 days ago | Google AI sentiment 0.20 | comments: discuss | tags: cryptocurrency


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(Original link: forbes.com)

Announced today, cryptocurrency ecosystem developer Bcause plans to utilize Nasdaq’s Financial Framework platform. As part of its ecosystem, Bcause is using Nasdaq's platform to launch its spot trading crypto market, Bcause CEO Fred Grede confirmed to me in an interview. "This is a pure technology licensing agreement, so what we're licensing is their order entry platform, their trade matching system, their clearing systems and their market surveillance systems," Grede explained.
Grede noted Nasdaq's system has seen considerable worldwide usage. "I've probably installed this system five times all over the world, in Hong Kong, in Bankok," Grede said. "It's world-class technology. That's the best way I can put it," he added. Grede said Bcause views Nasdaq's technology as an advantage in terms of what is currently available in crypto for institutional and professional traders. Adding to Nasdaq's prevalence, a statement provided to me included, "Nasdaq's market technology powers more than 250 of the world's market infrastructure organizations and market participants."
In a "strategic" move, Bcause will launch spot trading on Nasdaq's platform, with its sights set on derivatives and futures trading down the road, Grede told me.
Grede said,
We feel there's a lot of issues in the crypto market today, and if we could get a foothold in spot trading, that's immediate delivery versus payment. Then obviously we need CFTC [ Commodity Futures Trading Commission] approval for derivatives trading and for clearing, and those applications are in process with the CFTC, but we just feel its better strategically to get a toehold in spot trading that we can leverage into derivatives trading."
Bcause also recognizes the necessary regulatory procedures regarding its spot trading, Grede mentioned. Spot trading requires a FinCEN registration, and applies to individual state regulations, he explained, adding,
You need money transmitter licenses because you're exchanging U.S. dollars for crypto, so you actually have to go to all 50 states to get approval to operate as a money transmitter in those 50 states. We won't have all 50 by the time we launch, but we'll probably have 25 or 30, and I think there's five or six where you don't need any kind of a license to do it, but [...] there is no federal regulatory scheme over spot trading of crypto today."
Nasdaq also sees Bcause as a notable player in the space. Nasdaq senior vice-president 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 [...] By leveraging the Nasdaq Financial Framework, Bcause will have the scalability and modular functionality to introduce new micro-services and expand its business offerings to meet industry demands and the evolution of the digital assets economy.”
According to a statement, Bcause is "the world’s first full-stack cryptocurrency ecosystem." Bcause aims to launch its spot market sometime in the first half of 2019, the statement said.
Earlier this year, Forbes reported on seven cryptocurrency exchanges utilizing part of Nasdaq's framework - its proprietary surveillance technology. This allows verified exchange users to benefit from Nasdaq's technology for improving fraud and manipulation detection, Forbes explained....

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