March 25, 2015
New York Based startup Noble Markets, with the help of Nasdaq OMX Group Inc., is bringing a new era of technology to mainstream investing. Nasdaq OMX has agreed to provide Noble with the core technology needed to power a revolutionary marketplace that will facilitate the trading of bitcoin, or similar currencies, among investors. The platform will utilize the X-stream trading system, Nasdaq’s cutting-edge system that allows market participants’ orders to be matched easily. This system is already in place at more than 30 exchanges and marketplaces worldwide.
Unlike prior attempts at similar solutions, Noble’s system will only allow involvement from corporate and institutional investors. The funds will be placed in transparent, separated accounts that will be safeguarded by 3rd party institutions, while settlements and clearings are done in real-time. Noble is helping to bring traditional investment strategies to this era’s technology focused economy. Online currencies such as bitcoin have garnered quite a bit of attention from private investors in the recent years, and it may finally be time for mainstream global trading services to adapt. This considered, many are still apprehensive about the use of a blockchain-based currency as a primary means of transaction. Blockchain is not an end-all-save-all, as it still has its downfalls. Though widespread implementation would create a more efficient global financial environment, currencies of this nature are prone to frequent fluctuation, investment scams, and cyber security issues.
Lately, a large amount of attention has been focused on bitcoin and similar technologies. The New York Stock Exchange recently invested in the bitcoin payment facilitator Coinbase, and former J.P. Morgan & Chase Co. executive Blyth Masters was appointed to lead a new digital-asset settlement service. After its inception in 2009, bitcoin enjoyed an immense boost in popularity, with its trading value topping out at approximately $1,100. Sadly this didn’t last for long; after infamous press coverage of services involving bitcoin, such as Silk Road, and the collapse of Tokyo-based exchange group Mt. Gox, the price dropped significantly and has now leveled at around $265.
(Sources: WSJ; Noble Markets)