Wall Street Gears Up To Trade Bitcoin with NYSE, ICE and NASDAQ
Wall Street players are getting ready to include bitcoin in their framework. It has been ten years since the virtual currency has been struggling in with the regulatory authorities around the world.
According to The New York Times, the apparent collaboration of New York Stock Exchange and Intercontinental Exchange is trying to develop an online trading platform which will assist the trade of large bitcoin funds. The news has surfaced after Goldman Sachs announced its intentions to launch the first ever bitcoin trading unit on Wall Street.
The moves of Goldman Sachs and Intercontinental Exchange come as a surprise as the virtual currency has been mostly linked with illegal activities possessing a high volatility rate. Although the news has started doing rounds in the trade circles, yet Intercontinental exchange has not made any final decision on its plans. Most of the institutions on the Wall Street are still hesitant to link with the untamed virtual currency. A spokesman for the company did not come up with any comments which show the confusion ICE is going through.
On the other hand, many firms and governments have shown a genuine interest in the technology behind crypto generation, i.e., blockchain. Chicago Mercantile Exchange, a large financial exchange, has developed futures which are directly linked to the price of bitcoin. But, ICE’s move would allow users to hold bitcoins in their wallets and trade them without addressing a third party.
As per some people familiar with the project, ICE is having meetings with numerous financial institutions about setting up ‘swap,’ through which banks will buy a contract that will end after the client owns a bitcoin the next day. The exchange will be backing and providing security to the banks throughout the process.
Adena Friedman, chief executive of NASDAQ, said, “Certainly Nasdaq would consider becoming a crypto exchange over time. 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.”
Friedman added, “Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.” She believes that digital currencies will survive through all the regulations and enter the future. It’s just a matter of time till the crypto space becomes mature and NASDAQ would provide its services in the meanwhile.
On the other hand, a former trader at Goldman Sachs, Paul Chou, created LedgerX as a direct competitor to Intercontinental Exchange, said that his company is focused on large bitcoin holders instead of financial institutions. His company aims to deal with crypto holders while eliminating banks, broker, and other institutions to minimize the cost of the transactions.
Chou informed that bitcoin is facing exceptional interest from financial institutions for the first time in its history. He believes that healthy skepticism is necessary for the growth of bitcoin and his team has arrived to eradicate any other issue related to the cyber coin.
It would be interesting to see if other Waal Street giants welcome Bitcoin and other altcoins as a new and inclusion in the system with a significant potential.