Warren Buffet may still dislike Bitcoin (BTC), but many other big names on Wall Street seem to be warming up to the digital currency. The Intercontinental Exchange (ICE), the parent company to the New York Stock Exchange (NYSE), has been working on an online trading platform that gives institutional investors access to buy and hold BTC.
The New York Times reported late Monday that the plans are still ‘confidential’ and the four individuals that briefed the publication on the matter asked to remain anonymous. This news broke following Goldman Sachs’ grand announcement to be the first Wall Street bank to open up its own Bitcoin trading unit.
May 3: Goldman Sachs says it will operate a bitcoin futures market.
May 8: According to NYTimes, New York Stock Exchange, the world’s biggest stock market, is preparing a *proper bitcoin exchange* not futures.
2018 is looking more interesting!https://t.co/yd0WsTEjy2
— Joseph Young (@iamjosephyoung) May 8, 2018
ICE and Goldman Sachs aren’t the only big Wall Street hitters to enter into the crypto space recently.
Nasdaq partnered with the large cryptocurrency exchange Gemini just a few weeks ago, to get its foot in the Bitcoin futures game. Even the long-time anti-Bitcoin bank JPMorgan has turned a new leaf. Back in October of last year, the institution filed for a patent to use blockchain technology in its network payments. These moves mark a dramatic shift toward mainstream adoption for the digital currency.
The NYSE-parent recently held various conversations with large US financial institutions about potential ‘swap’ contracts. In a swap, banks would buy a contract that would give one of its customer’s Bitcoin the very next day. According to the individuals working on the project with ICE, these contracts would be backed and secured by the exchange.
While these swap contracts may seem more complex than just trading USD for BTC on an exchange like the rest of us; these particular trades come under the regulation of the Commodity Futures Trading Commission. The swap trades operate clearly under the current laws, something exchanges have yet to do.
Adena Friedman, CEO of NASDAQ, recently said her company would create a cryptocurrency exchange if the regulatory issues were ironed out by the U.S govt.
What do you think about the latest news? Is this just the beginning? Leave your comments below.
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