In the traditional stock exchange market, NASDAQ needs no introduction. Launched in 1971, National Association of Securities Dealers Automated Quotations (NASDAQ) is the world’s second-largest stock exchange by MCAP. Obviously, it is a dealer market that has been active in the industry for nearly half a century, attracting the biggest names in the world. For instance, it attracted top brands in the tech ecosystem, including Google and Facebook.
Based in the world’s financial capital, New York, NASDAQ lists over 3,300 companies. Additionally, with a market cap of $10 trillion USD, it is the traditional stock market leader. It is now entering the crypto space as well. In fact, it would seem that not even the current market bear can stop it.
NASDAQ is launching into the crypto space
According to media reports, the exchange has finalized all in-house arrangements to enter the cryptocurrency industry. Bloomberg reported that the traditional stock exchange leader says that they are going ahead with the move despite the cryptocurrency market downturn.
While the exchange has resolved to launch into the crypto industry, there is one hurdle it needs to overcome. Yes, the U.S. regulator, Commodity Futures Trading Commission (CFTC). Inside sources say that the exchange is working round the clock to meet the stringent requirements of the watchdog before launching. If things go according to plan, NASDAQ will launch its futures trading platform by Q1 2019.
All eyes on the competitors
When the New York-based exchange broke the news in January, CEO Adena Friedman, explained the intricacies. According to the chief executive, a significant challenge was how to develop products that would be in a different class. Apparently, NASDAQ has passed that stage now.
In a similar vein, Bittpress reported that Intercontinental Exchange (ICE) says that there is no going back on the decision to launch a similar platform. In fact, ICE says that Bakkt will launch on January 24th, 2019.
The two giants will offer exciting products to crypto users, leading to interesting competition.
Impact on cryptocurrency industry
Indeed, NASDAQ’s resolve to join the market despite a prolonged bear market suggests that there is a demand from institutional investors. A market leader like NASDAQ cannot expend a significant amount of its resources to develop infrastructure for an asset class that lacks growth prospects.
By Q2 2019, both Bakkt and NASDAQ will be offering Bitcoin futures product derivatives. One fact that no one can deny is that the arrival of these giants will increase liquidity of the new asset class. No doubt, this will certainly be a game-changer.
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