Bitcoin trading may be joining the likes of U.S. equities and other financial assets as part of global market exchanges. Nasdaq OMX Group Inc. recently agreed to provide the trading technology needed by Noble Markets, a New York-based startup company, to allow investors to trade bitcoin and other digital currencies.
This will allow institutional investors, large companies, and hedge funds to include bitcoin trading in their portfolios, thereby enhancing the volumes and liquidity for the cryptocurrency. In particular, Noble Markets’ platform will be using Nasdaq’s X-stream trading system and their marketing support. The X-stream high-tech trading system for matching orders is already being used by more than 30 exchanges worldwide.
Bitcoin Trading Goes Global
Bitcoin trading enthusiasts say that this could pave the way for increased mainstream acceptance for the digital currency, which has the potential for transforming global financial transactions. Online merchants and startup companies are already enjoying the anonymity and efficiency of bitcoin payments, which allow them to cut overhead costs compared to using credit or debit cards in transactions.
Apart from that, the security and anonymity promised by the blockchain – a public ledger of transactions associated with bitcoin – could be revolutionary for the financial industry which has been subject to volatile price fluctations, fraud, and cybersecurity threats. For now, the bitcoin trading industry is also dealing with a few hacking concerns of its own as the lack of regulatory oversight is being blamed.
For Noble Markets CEO John Betts, the involvement of a reputable group such as Nasdaq in bitcoin trading helps provide credibility for the cryptocurrency and related digital assets. “[Investors] can say, ‘These are sophisticated organizations; they have done their due diligence, and if it’s good enough for them, it’s good enough for us’,” he explained.
Lars Ottersgård, Nasdaq’s executive vice president for market technology, also said that they are looking forward to working with Noble Markets in addressing the needs of the digital age.