As an asset class, Bitcoin has gained a lot of retail interest, but when it comes to the big money, institutional investors haven’t had the opportunity to really participate. But that’s not because Wall Street isn’t interested.
“There is not a hedge fund or institutional investor that doesn’t have Bitcoin on their white board. They know about it, they’re thinking about it. Some even have it in their personal accounts,” explained Matthew Roszak, an investor from Tally Capital. “But in order for them to jump in the water, they need tools that they are more used to.”
(The biggest U.S. stock exchange operators are taking steps to embrace bitcoin, spurring speculation the digital currency is coming up from underground.
Nasdaq OMX Group Inc. revealed Tuesday that New York-based Noble Markets, a platform for trading bitcoin, has agreed to license Nasdaq’s X-stream technology. Noble is adopting the same software used by securities exchanges around the world, and a related system runs the Nasdaq Stock Market, one of the biggest equity exchanges. The news follows the New York Stock Exchange’s January agreement to invest in Coinbase, another platform for trading the digital currency.
New institutional cryptocurrency marketplace will operate X-stream trading technology
NEW YORK, March XX, 2015 — Nasdaq (Nasdaq: NDAQ) and Noble Markets announced today that Noble Markets will implement Nasdaq’s X-stream trading technology for the company’s soon-to-be-launched digital currency marketplace. X-stream is the most widely used exchange trading technology in the world, powering more than 30 marketplaces globally.
“Noble was founded on the principal of bringing credible market structure and institutional trading expertise to the digital currency marketplace. All customers demand a fair and orderly market, the best possible pricing and confidence trades will be completed efficiently,” said John Betts, CEO and founder of Noble Markets. “We are excited that Nasdaq shares our vision and commitment to support the development of this ground-breaking market. Our marketplace, powered by X-stream, allows us to leverage a proven and trusted venue that supports global trading worth billions of dollars reliably every day. We look forward to more exciting announcements over the coming months.”
Nasdaq OMX Group Inc. has agreed to provide New York-based startup Noble Markets with core technology to power a new marketplace aimed at allowing companies and institutional investors such as hedge funds to trade bitcoin and related digital-currency assets.
According to a joint statement provided to The Wall Street Journal, Noble’s platform will use Nasdaq’s X-stream trading system, a high-tech system for matching market participants’ orders that is used by more than 30 exchanges and marketplaces worldwide. Nasdaq will also provide marketing support.
Major American stock exchange Nasdaq has announced a first-of-its-kind partnership with bitcoin startup Noble Markets.
As part of the deal, Noble will utilize Nasdaq’s X-stream technology upon its formal launch, joining the 30 global marketplace that currently use the multi-asset trading platform. Led by founder and CEO John Betts, Noble Markets boasts a team with experience at traditional financial giants such as Goldman Sachs, Morgan Stanley, Merrill Lynch and UBS.
Perhaps best known in the bitcoin community as one of the investors and organisers behind the campaign SaveGox.com, Betts has also served as VP of strategy for Strevus, a regulatory compliance platform provider that added support for digital currency startups in 2014.