TradeTalks: Digital Currency Trends

Alistair Wandesforde, Principal Consultant at DataArt, speaks with Jill Malandrino, Global Markets Reporter at Nasdaq, about digital currency trends, highlighting the barriers to institutional investors’ participation in the cryptomarket and noting the centralized exchanges’ strategies to reduce those barriers.

“There's a great opportunity right now in the cryptocurrency market, and institutional investors are primarily concerned with risk management. One of the major issues that current DCEs need to address is the ability to provide those risk management solutions. They were basically built out originally as retail platforms and as they evolve, they need to catch up and provide the same sort of certainty and confidence to institutional investors that more traditional or incumbent exchanges would do.

They're [today’s exchanges] mainly focused on trying to provide price certainty. They also want to make sure that they are regulatory and compliant. They also need to try to bring in people from the industry in order to give them that depth of expertise that the newness of their exchanges needs to evolve into to give that confidence to institutional investors.

Centralized exchanges are looking to, for example, partner with other, perhaps even incumbent exchanges, to deliver technological solutions. So for example, Nasdaq and Gemini Trust partnered to bring Nasdaq’s smart surveillance technology to their marketplace so that they would be able to monitor all of the trade pairings that were going on in their marketplace. So that fast- tracks the ability for these newer exchanges to provide that level of certainty to institutional investors with processes that are familiar.”

Full interview:

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