Nasdaq to leverage blockchain technology to enter markets such as carbon trading

The U.S. stock exchange Nasdaq previously canceled the development of cryptocurrency custody services due to regulatory considerations. It is now planning to repurpose its technology for the carbon trading market to reduce involvement in cryptocurrencies. In addition, Nasdaq is also the exchange where BlackRock has applied for the listing of a Bitcoin spot ETF.

Utilizing Existing Technology for Carbon Credits and Other Trades

Despite Nasdaq's application to establish a trust company with the New York Department of Financial Services (NYDFS) for handling cryptocurrency custody services, Nasdaq decided to pause the plan in July due to the U.S. business and regulatory environment.

Nasdaq Co-President Tal Coen recently mentioned in an interview with Bloomberg TV:

We will offer it as a technology service. We will have an institutional-grade end-to-end technology platform, and we hope that it will power not only digital assets but also markets such as carbon.

As regulatory authorities seek to separate the U.S. financial system from cryptocurrencies, Nasdaq and other mainstream financial companies have abandoned their ambitions for digital assets. The exchange stated earlier this year that despite halting applications related to that business, Nasdaq will continue developing its technology to handle cryptocurrencies for clients.

Nasdaq Willing to Collaborate with European Legislators

U.S. exchange operators benefit from the developed capital markets in the U.S., with many companies choosing to list in New York rather than on other public markets. For example, this year's most talked-about IPO was by the UK tech company Arm Holdings Plc, which chose to list on Nasdaq instead of its local market.

Coen mentioned that Nasdaq is also willing to collaborate with European legislators to make Europe a more attractive place for such listings. He noted that in Europe, there are structural issues such as cumbersome regulations, tax systems, a high degree of fragmentation, and complexity, but

Nasdaq has significant operational rights in Europe, and we are willing to take calls and discuss how we can assist Europe

Nasdaq Also Serves as Exchange for Bitcoin ETFs

Entities currently applying for Bitcoin spot ETFs, including BlackRock's iShares and Valkyrie, are expected to list on Nasdaq.

Nasdaq CEO Adena Friedman also mentioned in a previous earnings conference that the company will continue to engage in the digital asset industry through various means, including partnerships with companies planning to issue ETFs.