Nasdaq debuts 7 cryptocurrency trading platforms
With more and more institutional involvement in crypto, Nasdaq is not staying aside, on-boarding more and more cryptocurrency trading platforms. The sources cite there are seven already on Nasdaq now, with more to join in the nearest future. Currently, only two of them – Gemini and SBI – are publicized.
According to Tony Sio, Nasdaq’s head of exchange and regulator surveillance team, there’s a certain process used ‘to onboard’ cryptocurrency trading platforms. This process includes three main key points: business model, KYC/AML policies, as well as exchange governance and control.
When it comes to the business model, Nasdaq’s main question is “how reputable the products are.” For instance, here Nasdaq determines whether or not the particular crypto assets on the particular platform were ever used for illicit activities.
Interestingly enough, for the KYC/AML part, the leading stock exchange is not only interested in security mechanisms the trading platforms implements. One of the most notable questions in the interview they conduct is “What is the organizational structure and what are the founders’ backgrounds.” According to the inside sources, Nasdaq preferably wants to see founders with tech and financial market expertise.
The third main point on Nasdaq’s agenda during the interview is exchange governance and control, with the final key question: “Are crypto asset listing standards in place?”
For those crypto platforms that qualify to join Nasdaq, it offers their established surveillance technology to prevent fraud and manipulation.
According to Sio, Nasdaq along with other institutions see crypto as “a growing asset class.”
“We are working to help provide our technology, it could be around matching, it could be around surveillance, to help our customers as they grow their marketplaces,”