Source: Nasdaq To Launch Crypto-Centric Analytics Product By November
Unlike a majority of traditional financial institutions, Nasdaq, the world’s second-largest stock exchange by market capitalization, has taken a friendly approach when it comes to crypto assets, taking a series of measures to seemingly prepare for the arrival of the next ground-breaking technology — blockchain and similar decentralized systems.
As reported by Ethereum World News on multiple occasions, the firm has overtly shown interest in offering a crypto-focused exchange service, with Nasdaq CEO Adena Friedman telling CNBC that she believes cryptos “will continue to persist” and that it would be logical for her firm establish such a service. Friedman elaborated, stating:
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… I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature.
But as alluded to in the above statement from Nasdaq’s CEO, for now, it seems that this move is still a few years away. Regardless, the forward-thinking institution still seems to be poised make a small, yet meaningful foray into this budding industry.
According to insiders of the New York-based firm, the world-renowned stock exchange has begun to work on offering tools, services, and products that will allow investors to predict the future price action of the crypto market, as per a Coindesk exclusive.
Elaborating on the exact details, the source noted that analytics would likely be available for upwards of 500 cryptocurrencies and will analyze the flow of crypto assets from wallet-to-wallet, exchange-pertinent data, and social media sentiment and discussion.
The individual who was privy to the company’s plans went on to reveal that this product will likely be added to Nasdaq’s Analytics Hub, which utilizes machine learning and “natural language processing (NLP)” methods to sweep through social media and “alternative data sources” to give interested investors an insight into the inner workings of a publicly-traded market.
As it stands, the Hub has only had a focus on legacy capital markets, but many optimists have begun to believe that this move may signal an eventual entrance of well-known Wall Street figures and corporations into this early-stage asset class. Speaking on the matter, Bill Dague, the head of alternative data at Nasdaq, noted:
Given the abundance of interest, we are exploring cryptocurrency related datasets… Whether or not we launch a crypto-related product remains to be seen.
While Dague seemed hesitant to reveal that the firm’s exact stance on such a product, the aforementioned insider doubled-down on his/her claims, adding that this new feature could hit the public limelight sometime during November of this year.