Bcause, which claims to be the world’s first full-stack cryptocurrency ecosystem, will operate its markets on Nasdaq’s matching engine, clearing, and market surveillance technology through its Nasdaq Financial Framework platform.
Nasdaq said in a press release (Mar 13) the technology is expected to go live in the first half of this year together with the launch of Bcause’s new spot crypto market. Its market surveillance technology is targeted to ensure surveillance protocols fit the needs of a crypto marketplace. Nasdaq believes this will help Bcause monitor its markets for incidents of misconducts and manipulation, thereby also maintaining a safer spot and derivatives market.
Apart from integrating a broad range of business functions, the Nasdaq Financial Framework’s purpose-built design enables firms to leverage the latest in technology developments, such as blockchain and machine learning, to bring new functionality to market more quickly.
Nasdaq senior vice president and head of Marketplace Operators and New Markets Paul McKeown affirmed that “Bcause has methodically built a unique ecosystem that gives investors, partners and market players a holistic experience in tapping the cryptocurrency market and value chain”.
McKeown expressed confidence that Bcause will be able to scale its business offerings and introduce new micro-services to meet industry demands and evolution.
Bcause’s full-stack cryptocurrency ecosystem is aimed to include mining facilities, a spot market, a regulated derivatives exchange, a regulated clearinghouse, and custody operations. It has also applied to the US Commodity Futures Trading Commission to become a designated contract market (DCM) and establish a derivatives clearing organization (DCO).
Bcause CEO Fred Grede said of the venture with Nasdaq, “I fully expect that our markets will attract a broad range of users, from those who are already quite active in the financial markets and familiar with Nasdaq technology, to a new breed of investors wanting to participate in the growing cryptocurrency marketplace.”
Two other crypto companies (out of a total of seven) are so far publicly known to also be using Nasdaq’s market surveillance, according to Cointelegraph – Gemini Exchange by the Winklevoss twins, and Vctrade by Japan’s financial services heavyweight SBI Holdings.