Nasdaq Licenses Its Market Surveillance Tech to Crypto Startup Bcause
Nasdaq has licensed U.S.-based crypto startup Bcause LLC to use its trading, clearing and market surveillance technology.
According to the announcement, Bcause will use the tech for its spot cryptocurrency market, set to launch via Nasdaq’s Financial Framework platform in the first half of 2019.
According to Nasdaq, the tech will let the company monitor its markets for manipulative activities and other types of suspicious conduct, therefore creating a more secure spot and derivatives market.
Fred Grede, CEO of Bcause, expects that the new crypto spot market will attract a broad range of users, including both experienced financial investors and crypto enthusiasts, who may be new to traditional markets.
Paul McKeown, senior vice president and Head of Marketplace Operators & New Markets at Nasdaq, further added:
"By leveraging the Nasdaq Financial Framework, Bcause will have the scalability and modular functionality to introduce new micro-services and expand its business offerings to meet industry demands and the evolution of the digital assets economy."
The startup has reportedly applied for a license from the U.S. Commodity Futures Trading Commission (CFTC), aiming to become a designated contract market and to establish a derivatives clearing organization later.
As Cointelegraph previously reported, a total of seven crypto exchanges were using it market monitoring tech as of Jan. 31 this year. Before Bcause, just two of the collaborations had been publicized — the Winklevoss twins’ Gemini exchange and Vctrade, run by Japanese financial services giant SBI Holdings.
Another digital exchange, which focuses on tokenizing traditional investment vehicles, uses a different technology protocol from Nasdaq — its Financial Information Exchange — to deliver its products.