The NASDAQ is attempting to be the first mover in crypto exchange governance, order execution, and at the forefront of institutional movement into the crypto ecosystem. While there have been other headlines connected to global exchanges dipping their toes into the crypto waters via partnerships and futures trading; the NASDAQ may just go all in.
**This particular article was sourced and penned by Abacus Journal staff nearly three months ago. In light of today’s developments that Nasdaq has not only partnered with MVIS and Van Eck, but also has immediate designs to list security tokens connected to current cryptocurrencies as well as the equities markets – our sources were proven correct.**
And what does ‘all in’ look like for the famously aggressive and tech-savvy NASDAQ? Creating a pathway for cryptos to be listed and traded on the exchange proper.
While the details remain a bit fuzzy a trusted NASDAQ source continues to feed us information on the timelines surrounding the likes of Bitcoin and Ethereum being listed and tradeable on the NASDAQ.
Our source just passed us this note: “The conversation around listing coins has centered on how they will be classified from a regulatory standpoint. As you can imagine, our leadership is closely connected to the rumbling at the SEC and CFTC around cryptos and what is expected over the next 3-6 months. Even with the longest of time frames assumed, some guidance will be provided and I expect we will act quickly. The framework (two different sets of the framework based on two different regulatory outcomes) has already been laid to create a separate silo for coin listings and a robust trading apparatus. Doing the math here, look for regulatory bodies to provide guidance in Q1 of 2019, and an announcement and a ‘coin exchange’ to either be announced or launched in Q2 of 2019.”
But is it really that big of a surprise? The tea leaves have been pretty well read at this point. Take a look at our previous article connected to NASDAQ and Gemini (the institutional Winklevoss crypto exchange) and pick out where this is headed:
That has led to a deeper relationship between the two firms and increased confidence from Nasdaq that there is a pathway to list, at a minimum, Bitcoin, and Ethereum, as tradeable entities on a global scale. This initial foray into the crypto ecosystem would be measured, careful, and work closely with regulatory back channels.
Our first Gemini source said the following: “Tyler and Cameron have moved the ball down the field in a meaningful way. Nasdaq, and its leadership, already are predisposed to finding an architecture solution and being the first to list actual tokens. Not just ETF’s or futures or some ‘derivative’ of the crypto apparatus…but rather list actual coins. They are getting very comfortable with the structures they’ve seen from Gemini, and the other research they’ve done with exchanges of note. There is a timeline forming for this decision and it could be earlier than some might think.”
A second Gemini source was a little more specific with the timing of a Nasdaq move into crypto trading: “Nasdaq and Gemini have gotten very, very comfortable with each other. Did you guys catch the little note in one of the latest articles where it said that Gemini was essentially doubling their staff by the end of this year? There is a reason for that and it is their work with Nasdaq. If you made me take a bet on it, I’d put money on their being a joint venture of some sort that sees several tokens listed and available to the public to trade on the Nasdaq by Q2 of 2019. If the people involved in the planning are telling me the truth, that is the bet I’d make…and these aren’t just tea leaves pieced together here – I asked three and four times and kept hearing what I am telling you. Remember, there is serious competition between these global exchanges to get there with cryptos. Nasdaq wants to plant a flag in the ground no different than Intercontinental (ICE), CBOE, CME, all of them.”
We back channeled this through several third parties connected to the ‘secret meeting’ and we were surprised by what we DID NOT hear from each of those contacts. Nobody denied this possibility or the timing of it. Nobody.
A secret meeting. Continued meetings. Backchannels with regulators. Tea leaves everywhere. This intel feels like it may even be a little conservative if you were to ask us.
The NASDAQ has a knack for winning these types of battles and blazing a trail, specific to tech. What better way to move into the next financial frontier than to blaze this particular trail?