Nasdaq Adapts Cryptocurrency Technology for Institutional Asset Markets

Nasdaq Inc. is repurposing its previously developed cryptocurrency technology to create a high-quality platform suitable for various asset markets, including digital assets and carbon trading. Despite suspending its plans to launch a U.S. cryptocurrency custodian business in July, Nasdaq is actively advancing its technology for tokenized assets.

During an interview on Bloomberg Television, Nasdaq’s co-president, Tal Cohen, unveiled intentions to present this technology as a comprehensive service. This strategic shift aims to provide an institutional-grade platform that supports digital assets and markets like carbon trading. This change in direction is in response to the increased regulatory scrutiny that mainstream financial institutions, including Nasdaq, are facing in their involvement with digital assets. Nevertheless, Nasdaq remains committed to developing technology for the management of cryptocurrency assets on behalf of its clients.

Nasdaq’s decision is consistent with wider trends in financial markets. For example, UK-based companies, such as Arm Holdings, are increasingly opting for U.S. markets, particularly Nasdaq, for significant public offerings, as demonstrated by one of the largest share sales in 2023.

When discussing the European market, Cohen expressed Nasdaq’s willingness to collaborate with European lawmakers. He emphasized the challenges posed by intricate tax systems and regulations, advocating for changes that would make Europe a more attractive destination for listings.

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