Nasdaq Would ‘Certainly Consider’ Opening Cryptocurrency Exchange, Supports Gemini

Nasdaq CEO Adena Friedman says “Certainly, Nasdaq would consider becoming a crypto exchange over time.” Speaking to CNBC’s Squawk Box on Wednesday, she added, “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 announcement coincides with a tepid stock market, as Bitcoin and cryptocurrencies have started to rebound from earlier losses since the first quarter of 2018 when Bitcoin sunk to $6,928 from $13,412. The number one cryptocurrency is now trading around $8,972.

Nasdaq, an American stock exchange, is the second largest exchange in the world by market cap. The company recently noted optimism is fading in traditional markets as investors worry that earnings are hitting their peak.

“It’s been quite a first quarter earnings season so far. We have seen earnings growth of more than 18% and an 80% beat rate yet the markets are little changed since the beginning of the season. Companies that have topped estimates have seen just a 0.1% gain in the 2 days after reporting well below the average of 1.1% according to Factset. What gives, you ask beyond the obvious concerns of a trade war with China, the 10 year Treasury yield touching 3% and potentially a more aggressive Fed??? Well earnings reports are backwards looking meaning that further appreciation from tax cuts will begin to fade over time. It’s probably already priced into the market and investors are beginning to realize that a potential deceleration is ahead. Case in point Caterpillar’s statement that this quarter was probably a “high water mark” for the stock.” Nasdaq MarketinSite

Friedman says she believes cryptocurrencies will persist and that the space needs to mature. Once the market is more regulated, Nasdaq could consider adding an exchange.

The company also supports crypto exchanges and announced today a deal with Gemini, a Coinbase competitor founded by Tyler and Cameron Winklevoss. In an email to its customers, Gemini announced the implementation of Nasdaq’s SMARTS Market Surveillance technology to monitor the company’s marketplace. “SMARTS Market Surveillance, which is considered the most widely deployed surveillance system in the world, will enable us to monitor across all of our trading pairs, including BTC/USD, ETH/USD and BTC/ETH. “

The system will automate the detection, investigation and analysis of potentially abusive or disorderly trading, and help the crypto space mature.

The rollout will take place over the coming months.

 

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