We’ve been chasing an oft-asked question ever since we posted the Nasdaq article last regarding the exchanges intention of creating a yet-to-be-known architecture to list large market cap tokens. And it looks like we’ve been able to come up with some answers.
One source at the Nasdaq, on the condition of anonymity, was able to point us in a direction that made it clear what the exchanges intentions were and the comfort level being created around this listing project. Specifically, the exchanges work with Gemini (of Winklevoss fame) and the market data that has been collected over the past six months of monitoring and research that the Nasdaq has done on that exchange has created a comfort level that has pushed this narrative forward.
**A word of context before we get to the coins that are set to be listed within the Nasdaq framework that it creates – and it will crystallize when you read it. Based on conversations with other sources in and around this story, it is clear that the Nasdaq and other entities are rushing to play catch up with Bakkt. Bakkt has cracked the code and is currently the tail wagging the dog across the intersection of traditional finance and crypto. In other words, the Nasdaq is doing a version of ‘exchange fomo’ in the hopes that they can take crypto a step further than unlocking Bitcoin to the huddled institutions salivating at outsized profits. FYI – did you see that Binance nearly out-earned the Nasdaq in Q1 of 2018? There is your context.**
Our source had this to say about what is to come in terms of coin listings on the Nasdaq: “You can expect the initial listings to mirror what Gemini has on its exchange. They are comfortable with that footprint and can almost mirror that way that Gemini handles order flow and executions, albeit on a larger scale. Most of the public won’t see it, and it may not even be announced, but Nasdaq may even borrow the back end tech that Gemini uses in a lot of ways. Which is mind-blowing, but probably critical to keep up (sic, with Bakkt).”
“And the next to get listed, or to join Bitcoin, Ethereum, and Zcash at launch would be Litecoin. That is the talk that I have heard and would be the bet that I would make if you forced me too. I’ve heard it mentioned several times and the market cap coupled with the visibility of Charlie (Lee) makes it an easy choice. The chances that it launches along the side the other three in 2019 is probably better than 75%.”
And more from the same source:
“Yes, the Bakkt stuff is real and there is scrambling happening across the competitive landscape. Remarkable that they kept it under wraps the way that they did. But you can bet that the scrambling isn’t just connected to Bakkt beating everyone to market – it is probably more closely correlated to the profits being generated at Binance, BitMex, Coinbase, etc. That is as big a motivator as you are ever going to find in capital markets. That kind of revenue and the growth/speed of it cannot and will not be ignored.”
So now you have some answers to the ‘who’ and the ‘what’ associated with the Nasdaq activity. And even some background as to the ‘why’. Bakkt and profits.
And the Nasdaq is set to go beyond just the listing of Bitcoin (part of their strategy to blunt the head start that Bakkt has) and add other large market cap coins. That should ensure, at a minimum, some headlines that rev the engines at launch.
The real question…when $XRP?