Nasdaq is not just thinking about becoming a digital currency exchange, but has become certain that it will soon become the first global stock exchange to expand its digital asset transactions. The point is planned for October 2018.
Nasdaq may enter the cryptocurrency trade and shake the global digital asset market.
Bitcoin rebounded sharply on Friday, rising as far as $9300 from the lowest of $8,780. Nasdaq is the world’s second-largest stock exchange with a 47-year history.
“There is no doubt that Nasdaq will consider becoming a digital cryptocurrency exchange in the future.”
April 25th, Nasdaq CEO Adena Friedman said on CNBC program. On the same day, Nasdaq and the cryptocurrency exchange Gemini announced a technical cooperation plan. The latter will use Nasdaq’s SMARTS market surveillance technology to monitor all digital asset transactions such as Bitcoin/ U.S. Dollar , Ethereum / U.S. Dollar, and Bitcoin/Ether. This cooperation will help Nasdaq break through the use of regulatory technology in digital currency trading.
On April 27th, Blockchain’s pioneering portal, “Flying Cloud Finance,” was informed by multiple reliable sources on Wall Street in the United States that NASDAQ is not still thinking about becoming a digital currency exchange but that certainty is about to become the first one. The global mainstream stock exchanges that expand digital asset transactions will be scheduled to begin in October 2018. If everything goes smoothly, Nasdaq will formally roll out digital currency trading products in about five months. Jiyun Finance was informed that at present, Nasdaq has completed a number of preparatory work, and the relevant system architecture is being systematically deployed.
Digital Currency Market: Elephants Come
Is Nasdaq really ready for the tide of digital assets?
Senior figures in the field of blockchain and digital assets, chairman of the Hong Kong-listed company ViewSonic Energy, and Zhang Li, founding partner of the Shenzhen Blockchain Venture Capital Fund, told Huntercloud that the Nasdaq is highly likely to enter digital assets. Because Nasdaq represents the high-tech sector of the US securities market, acceptance of new technology trends is very high, and it is possible to transform and increase blockchains and digital asset-related transaction blocks and regions.
“They’ll be very fast. Americans generally don’t talk about doing it first, but they do it first or not do it at all.”
With regard to the possibility of accepting admission, the industry expects a high degree of agreement.
The digital currency trading platform CoinTiger CEO Frank Ling stated to Huntercloud that there is a high possibility that Nasdaq will enter the game. The Chicago Mercantile Exchange, which has a very high market position, has advanced to the field and obtained comparison through bitcoin futures trading. Special currency pricing power has laid the first step in the deployment of a large number of financial institutions. Existing stock exchanges will also compete in order to meet the user’s configuration needs.
However, Nasdaq still faces many obstacles in starting digital currency transactions and it will take time to fix them.
Ling Fengqi said to Huntercloud that Nasdaq still needs to solve several problems: If it is a breakthrough at the legislative level, how can the current digital currency be included in the supervision of the SEC? How does BTC and the various ERC20 Tokens treat differently? How to manage a large number of emerging Tokens? In what way is it introduced to Nasdaq? There are still many blank areas at the legislative and regulatory levels. In addition, there is a need for more rigorous supervision at the project level. For example, is it compulsory to oblige all projects to comply with the Reg A (United States Crowdfunding Act), and how to introduce projects outside the United States?
“In fact, the US market has already recognized the value of digital currency. But the US Congress is still debating whether bitcoin should be included in commodity supervision or securities supervision,” said Ling Fengqi.
Exchange pattern or reshuffle
Nasdaq’s digital asset transactions in the market are generally interpreted by the industry as positive.
On the one hand, it is illustrated that the global consensus on cryptocurrencies and digital assets has been strengthened and agglomerated. Digital assets will gradually be recognized and protected in various countries. On the other hand, the inclusion of traditional mainstream financial trading market systems will result in stronger regulatory compliance and Stable trading environment.
Zhang Li told Huntercloud that NASDAQ’s on-line digital asset transactions will have a good bias effect. If developed countries such as the United States decide to incorporate digital asset transactions into the mainstream market, they must do so from the legal and market levels. A very adequate preparation to join the tide of digital assets.
“If the U.S. policy trend is followed, more countries will open digital asset trading licenses, which will have a positive impact on the global digital asset market.”
A chairman of a digital asset exchange overseas told Huntyuncao that if the United States can establish standards and standards in customer KYC certification, exchange operations management and risk management systems, many countries will use the US standard as a reference. Regulate and manage the digital currency market. Such a statement would be a positive signal and the existing Digital Asset Exchange will apply for a license in more countries and regions.
So will Nasdaq’s entry into the game have a fatal impact on existing digital currency exchanges?
In this regard, Lingfeng Qi told Huntercloud that just as the Chicago Mercantile Exchange received Bitcoin pricing rights, if Nasdaq enters the market, it will have a significant impact on the market, but it will not affect the existing digital currency exchanges. Too big does not constitute significant competition. Because traditional business ideas do not solve the problem of digital asset trading, existing players have grown rapidly. “In addition, there are genetic problems, and watching stock trading and digital currency trading look a lot like it. In fact, there is not a category in the bones. Just like banks are going to play securities trading, there is almost no good play. Not have money to play. Well, the key is whether the interest structure can support the platform to do this.
On the technical level, Nasdaq also has some problems that need to be solved. Ling Fengqi believes that the digital trading platform trades encrypted virtual goods, and the prices are independent and can be freely filled. This is different from the technical framework of securities trading. There are no problems with the stocks. All of them are concentrated, mainly registration and settlement. There is a liquidity impact problem when there is delivery and withdrawal of goods.
“Nasdaq needs to be a warehouse for the delivery of goods. It is necessary to rebuild the entire trading system. It was originally used as a voucher for trading. Now it is necessary to do digital goods transactions and cash transactions. It is actually quite complicated. The existing digital currency transactions are therefore currency transactions and currency. Currency trading is the main method, and the currency transactions are mainly on a few single currency pairs, provided that the exchanges have enough value to be prepared. The depth of the spot market determines whether a trading platform can expand,” he said.
Ling Fengqi believes that the Nasdaq’s entry into the game has a lot of symbolic and motivational effects for the industry, but it still requires a lot of preparation and will leave the market with plenty of time. Today, the exchange’s competition is mainly more than liquidity, trading mechanism, mutual trust with large-value traders, and so on.
“The future stock market and digital assets fair will be deeply integrated. Essentially, the stock market and digital asset market are similar to the relationship between domestic stock A and B shares. Equity is more about control, and Token is more about using it in the future. Rights and income rights. Stock rights will also be expressed in the Token way,” Ling Fengqi said to China.
In any case, the emergence of the world’s leading stock exchanges, with years of accumulated credit, systems, and customer-dependent reliance, will surely set off an uproar in the global digital asset exchange market.
The possibility of reshaping the exchange pattern is very big, whether it is old or new conflicts, strong or weak rolling or strong competition, and it remains to be seen.
Author: Marko Vidrih