In a conversation today, Nasdaq’s CEO, Adena Friedman, said that the American stock exchange would “certainly” consider serving as a digital currency exchange down the road. The statement reflects an apparent growing sentiment within traditional investment markets, as these organizations are increasingly expressing interest in dealing with digital assets. Friedman’s statements could have huge ramifications if they eventually come to fruition, as Nasdaq is the world’s second-largest exchange in terms of market cap.
The statement arrived during a discussion with CNBC’s Squawk Box, where the Nasdaq CEO provided forward-looking sentiments regarding the possibility of Nasdaq dealing with digital currencies.
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"Certainly Nasdaq would consider becoming a crypto exchange over time," she said. "If we do look at it and say 'it's time, people are ready for a more regulated market,' for something that provides a fair experience for investors."The statement comes following additional news today that Nasdaq is dabbling with the digital currency market through a new partnership with the Winklevoss twins. Previously, Cameron & Tyler Winklevoss were reported to be the world’s first Bitcoin billionaires, and launched a digital currency exchange called Gemini in 2015. Now, Gemini hired Nasdaq to serve as a watchdog for the digital currency industry. According to a report from Bloomberg, Nasdaq will facilitate market surveillance for digital currency trading, marking the first deal between a significant stock exchange and a digital currency exchange.
Nasdaq’s forward-looking statements on the prospect of becoming a digital currency exchange are reliant on the market maturing. In major countries like the U.S. and Canada, digital currency regulation is yet to be clearly defined, creating hesitance for some investors and institutions. Further, Nasdaq stating that it will await the public being ready for a “more regulated market” could conflict with the pro-decentralization sentiment of many digital currency enthusiasts. In this area, lawmakers look to find the balance between regulation that protects investors but does not stifle innovation. This week, the Wall Street giant, Goldman Sachs, hired its first digital currency trader, a move which could confirm rumours that the financial institution is exploring the possibility of launching a digital currency trading desk. Previously, a subsidiary of TMX, the group that owns the Toronto Stock Exchange (TSX) entered a partnership with Paycase Financial. The subsidiary, Shorcan Digital Currency Network (DCN), will launch a brokerage service around popular digital currencies, Bitcoin and Ethereum.Image credit: NASDAQ logo
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