NASDAQ OMX Group Inc has given its consent to offer a startup the core technology in order to power a marketplace for bitcoin trading and the associated digital-currency assets, according to the reports.
NASDAQ’s X-stream trading system, which is used by over 30 exchanges as well as marketplaces globally, will be used by the New York-based startup Noble Markets.
According to the reports, NASDAQ will be providing marketing assistance.
Noble will adopt the same software that is being used by securities exchanges worldwide and a related system that runs the NASDAQ Stock Market. Spokesmanpokesman Ryan Wells said that NASDAQ is open towards providing its sevices for bitcoin trading, which it views
The development follows the January agreement by the New York Stock Exchange to carry out investment in Coinbase, another major trading platform for the digital currency.
Coinbase, a Bitcoin payments processor which is supported by the New York Stock Exchange (NYSE), started a regulated exchange in the US earlier this year for smooth trading of the virtual currency.
“It is a vote of confidence in bitcoin the technology. Now that you are seeing big organizations providing technology, there’s a feeling that bitcoin is here to stay,” said Nicholas Colas, chief market strategist at Convergex Group.
The virtual currency bitcoins were launched in 2009. It allows people to carry out transactions purely over the Internet. The virtual currency came under scrutiny by the regulators both in the US and Europe after it reported a series of high-profile scandals, including the bankruptcy of bitcoin exchange Mt. Gox, based in Tokyo.
In other news, the NASDAQ Composite Index has reached an all-time record on Friday following the recent surge in stocks that major tech companies are experiencing. As Google added more $60 billion in market capitalization on Friday after a 16 per cent surge in stocks, the Index went up by 64 points to 5.163, surpassing the previous June 23 record.
The continous surge in tech stocks has raised fears since the beginning of the year that this might represent a bubble similar to the one posted before the dotcom crash of 1999-2000, when the NASDAQ Composite Index abruptly fell to half its value as internet-based start-ups which had seen massive investment started to crumble. However, skeptics are dismissing the possibility due to the fact that the tech sector is nowadays spearheaded by solid companies with high revenue and profit numbers and proven sustainability.