Suite of Crypto Services to Leverage Nasdaq Framework
Nasdaq and Bcause have announced that a suite of new cryptocurrency services will be offered via the Nasdaq Financial Framework. These services include crypto mining and custody solutions, as well as spot and derivatives trading. They are expected to attract a broad range of users including “a new breed of investors wanting to participate in the growing cryptocurrency marketplace.”
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One-Stop Shop Crypto Services
Nasdaq Inc. and Bcause Llc announced on Wednesday that a suite of crypto services will leverage Nasdaq’s technology, elaborating:
Bcause’s markets will operate on Nasdaq’s matching engine, clearing and market surveillance technology via the Nasdaq Financial Framework platform.
The Nasdaq Financial Framework “consists of a single operational core that ties together the deep portfolio of Nasdaq’s proven business functionality across the trade lifecycle, in an open framework,” the company detailed.
Launched last year with a mining facility in Virginia Beach, Virginia, Bcause is building what it calls a “full-stack cryptocurrency ecosystem” which it also claims to be the world’s first. According to the announcement, the services to be offered via Nasdaq’s framework are “all parts of the digital currency value chain,” from a custody solution to the mining facility in Virginia Beach, to spot trading for digital assets, to a futures market and derivatives clearinghouse. The technology is expected to go live in the first half of this year with the launch of the Bcause spot cryptocurrency market.
In addition, Bcause revealed that it has filed with the U.S. Commodity Futures Trading Commission (CFTC) to become a designated contract market (DCM) and to establish a derivative clearing organization (DCO). The CFTC website describes that “DCMs may list for trading futures or option contracts based on any underlying commodity, index or instrument.”
Wednesday’s announcement further states:
Once derivatives trading and clearing officially commence, Bcause will be the only venue to serve as a one-stop shop for all parts of the digital currency value chain: from the state-of-the-art digital mining facility launched in February 2018, to spot trading for digital assets, to a futures market and derivatives clearinghouse which are pending regulatory approval.
Using Nasdaq’s Technology
Nasdaq explained that its market technology is already being used by broker-dealers, exchanges, clearinghouses, central securities depositories and regulators in over 50 countries. In February, the bourse began tracking the prices of BTC and ETH with real-time price data.
Nasdaq also offers a digital asset surveillance technology, which it believes will help Bcause monitor its markets for manipulative activities and misconduct to benefit the security of the crypto spot and derivatives markets.
“I fully expect that our markets will attract a broad range of users,” Bcause CEO Fred Grede expressed, “from those who are already quite active in the financial markets and familiar with Nasdaq technology, to a new breed of investors wanting to participate in the growing cryptocurrency marketplace.” Paul McKeown, Nasdaq’s Senior VP and Head of Marketplace Operators and New Markets, Market Technology, commented:
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.
What do you think of this new suite of crypto services leveraging Nasdaq’s technology? Let us know in the comments section below.
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