BCause LLC, a Virginia-based startup creating a full-stack cryptocurrency ecosystem, today announced that the firm has engaged NY exchange operator Nasdaq through integrating its Financial Framework.
BCause is already in the process of establishing a spot market, derivatives exchange, and clearinghouse. The company’s strategy is to build a comprehensive cryptocurrency hub that caters to all market participants’ needs, from mining, to spot trading, to listed derivatives and clearing.
BCause says its crypto facilities will operate on Nasdaq’s matching engine, clearing, and market surveillance technology.
“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,” said BCause CEO Fred Grede.
Since the close of its Series B round last year, the firm has also applied to be derivatives clearing organization (DCO) and a designated contract market (DCM) with the Commodity Futures Trading Commission.
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Nasdaq lends more credence to the crypto notion
Nasdaq Financial Framework aims to enable clients easily experiment with new applications such as smart contracts, without them having to build the infrastructure from scratch or require an in-depth knowledge of cryptocurrency.
More crypto startups want to hire Nasdaq’s SMARTS, an industry benchmark technology used across Wall Street, not only to add more security and identify criminal trading behavior in its venue but also as a proactive approach amid regulatory clampdowns looming now and then.
While Nasdaq is supplying its technology to cryptocurrency exchanges, the company itself consider becoming a crypto exchange over time.
The exchange operator previously revealed it has a team of about 20 legal and technical experts who apply certain due-diligence criteria to evaluate whether the applicant exchange is technically capable and “morally inclined to use the software wisely.”
“By leveraging the Nasdaq Financial Framework, Bcause will have the scalability and modular functionality to introduce new micro-services and expand its business offerings to meet industry demands and the evolution of the digital assets economy,” added Paul McKeown, head of new markets at Nasdaq.