NASDAQ OMX Group has announced it will allow Noble Markets to use trading technology in the creation of a new system for financial institutions and investors to trade bitcoin and other virtual currencies. The platform will use NASDAQ’s X-Stream system, which matches users’ financial orders and is employed by more than 30 exchanges around the world. The company will also offer Noble marketing support for its new exchange.
Noble CEO John Betts said in an interview that the partnership should help to relieve investor concerns about the security of digital assets.
A lot of them just couldn’t do business with the existing exchanges. But we are a team of investment veterans. We speak their language.”
Unlike previous trading systems, Noble’s platform will be restricted to investment institutions (like hedge funds, for example) and corporations. The digital assets will be kept in separate, transparent accounts under the protection of third-party institutions. Clearing will take place through a complex model that updates account balances in real-time. This move follows the New York Stock Exchange’s investment in the bitcoin marketplace Coinbase and similar developments that will allow digital currencies to become more widely used in the near future.
Read more here – “Nasdaq to Provide Trading Technology for Bitcoin Marketplace,” (Michael J. Casey, Wall Street Journal)