Nasdaq or nas100 is known as the second-largest stock exchange operator in the U.S., has teamed up with Liquidnet, a multilateral trading facility (MTF) and electronic liquidity provider, in a bid to make Bitcoin a more viable tool for currency trading, according to nas100 news.
Nas100 Financial Framework:
The Nasdaq Financial Framework, or NasdaqFS, has made Nasdaq’s portfolio of assets, including exchange-traded funds (ETFs), options, futures, and the now-defunct Mastercoin, available on Liquidnet’s platform. Nasdaq makes NasdaqFS available for trading on Liquidnet’s money markets and exchange-traded options.
This allows investors and traders to diversify their digital currency portfolios across multiple financial venues and monitor assets via a single, transparent platform. Liquidnet is Nasdaq’s first institutional partner in the NasdaqFS initiative. Liquidnet today has 500 clients and $10 billion in client assets under management, which it says is made up of more than 15,000 traders and over 1,000 market makers.
CEO Statement About Company:
“Given Nasdaq’s extensive experience in the securities markets, particularly exchange traded products, our company believes Nasdaq FS is the right approach for institutional investors seeking flexibility and regulatory clarity,” said Hans-Joachim Heytens, co-founder and CEO of Liquidnet, in a statement.
Unlike some exchanges, Nasdaq’s bitcoin exposure is concentrated in the NasdaqFS site. This means that investors have the option of diversifying across several exchanges and financial platforms. They also have the option of buying and selling bitcoin at any time, even on the NASDAQ platform, as opposed to the speed of the Nasdaq Bitcoin Exchange. What’s more, NasdaqFS offers a number of other benefits, such as standard controls over any discrepancies between account balances and positions held, and multi-signature transactions, a method to make any changes more secure for cryptocurrency traders.
Statement of EVP of Securities Services:
Nasdaq currently holds 19% of the total U.S. Bitcoin exchange trading volume, with trading volume around $32 million on an average day. Liquidnet’s investment is subject to regulatory approval. Bunny McMillan, EVP of Securities Services, Nasdaq, said, “We are pleased to welcome Liquidnet as an investment partner to our financial framework. Nasdaq FS is designed to meet the needs of institutional investors seeking multi-asset class, access to high quality liquidity and multi-currency, among other features. The Nasdaq Financial Framework offers a customizable service for our clients who are seeking access to additional liquidity through market making capabilities.”
This is an interesting development as it demonstrates that Nasdaq is trying to find alternative uses for its assets. The Nasdaq Mastercoin was an exchange-traded note that was backed by the blockchain assets of cryptocurrency Mastercoin. The idea behind the Mastercoin note was to allow the holder to obtain exposure to Bitcoin without the risk of holding the actual Bitcoin. Instead, the owner could receive a token representing a percentage of the total number of Bitcoins created in the future. The market soon died, and the note was never traded.
The above analysis shows that Nasdaq has a good track record in taking on projects it believes can help the marketplace and change it for the better. In addition, this announcement proves that Nasdaq sees bitcoin and the blockchain as something that could be used by its clients and become a pillar of their digital currency portfolios. And who knows, perhaps we’ll see Nasdaq and NasdaqFS play a bigger part in the mainstream crypto economy in the future, much like it already has in the digital currency exchange and trading spaces.