Nasdaq, the renowned stock exchange operator, plans to leverage its cryptocurrency venture technology to expand into emerging markets. Despite abandoning its plans to launch a custodian business for digital assets in the United States, Nasdaq aims to attract clients interested in new assets, including carbon, using its technology platform.
Expanding Technology Services
In an interview with Bloomberg Television, Tal Cohen, the co-president of Nasdaq, revealed the company’s intentions. “We’re still going to launch it, but we’re going to launch it as a technology service. We’re going to have an institutional-grade end-to-end technology platform that we hope powers not only digital assets but markets like carbon.”
Nasdaq, along with other mainstream financial firms, has adjusted its digital asset ambitions in response to regulatory efforts to isolate the US financial system from cryptocurrencies. However, the company remains committed to developing technology to support crypto-related services for clients.
Collaboration and Challenges in Europe
Cohen expressed Nasdaq’s willingness to collaborate with lawmakers to enhance the region’s attractiveness as a destination for listings. Nasdaq understands the challenges faced by Europe such as tax regimes, burdensome regulations, and complexity that hinder growth. The company, being present in Europe, is ready to engage in discussions with European authorities to explore avenues for assistance and collaboration.
Earlier this year, Nasdaq announced its decision to halt plans for a cryptocurrency custody service due to changing business and regulatory environments in the United States. Nasdaq CEO Adena Friedman stated that the company has chosen to abandon its plans despite significant efforts to establish the necessary infrastructure and gain regulatory approval.
However, Nasdaq remains committed to supporting the digital asset ecosystem through ongoing engagement with regulators, the delivery of comprehensive technology solutions, and partnerships with potential exchange-traded fund (ETF) issuers.
