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Nasdaq Plans to Repurpose Technology from Reduced Foray into Cryptocurrency | Company news
Nasdaq and other traditional financial firms have given up on their ambitions in digital assets as regulators seek to isolate the US financial system from cryptocurrencies
The exchange said earlier this year that it would continue to develop its own technology to manage cryptocurrencies for customers.Bloomberg
By Jenny Surane and Francine Lacqua
Nasdaq Inc. is planning to repurpose the technology it developed for a smaller foray into cryptocurrency.
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The exchange operator, which halted the launch of a digital asset custody business in the United States in July, has been developing its own technology services related to tokenized assets.
“We will still launch it, but we will launch it as a technology service,” Tal Cohen, co-chairman of Nasdaq, said in an interview with Bloomberg Television. “We will have an institutional-grade, end-to-end technology platform that we hope will power not only digital assets but also markets like carbon.”
The Nasdaq and other traditional financial firms have given up on their ambitions in digital assets as regulators seek to insulate the U.S. financial system from cryptocurrencies. The exchange said earlier this year that it would continue to develop its own technology to manage cryptocurrencies for customers, even as it halted efforts to obtain a license related to the business.
US stock traders benefited from British firms choosing to debut on the public markets in New York instead of London. British technology company Arm Holdings Plc, for example, chose the Nasdaq rather than its home market to make one of the biggest stock sales of 2023.
Cohen said his company is willing to work with European lawmakers to make the region a more attractive destination for such listings.
“In Europe, I think we’re dealing with structural problems with tax regimes, burdensome regulations, a lot of fragmentation and complexity,” Cohen said. “We have a great franchise in Europe, we are willing to answer that call and talk to them about how we can help in Europe.”