(Bloomberg) — Nasdaq plans to reuse technology it developed to curb entry into cryptocurrencies.
The stock exchange operator halted the launch of its digital asset custodian business in the U.S. in July, but is building technology services related to tokenized assets.
“We're still going to launch, but we're going to launch as a technology service,” Nasdaq co-president Tal Cohen said in an interview on Bloomberg Television. “We have an institutional-grade, end-to-end technology platform that we look forward to powering not only digital assets but also markets like carbon.”
Nasdaq and other mainstream financial companies have backed off their digital asset ambitions as regulators seek to insulate the U.S. financial system from cryptocurrencies. The exchange announced earlier this year that it would continue building technology to process cryptocurrencies for its customers, even though it had halted licensing efforts related to the business.
US exchange operators have benefited from British companies choosing to enter the New York public market rather than London. For example, British tech company Arm Holdings chose the Nasdaq over its home market for one of its biggest stock sales of 2023.
Mr Cohen said the company was ready to work with European legislators to make the region more attractive as a destination for such listings.
“I think we face structural challenges in Europe: taxation, onerous regulations, a lot of fragmentation, a lot of complexity,” Cohen said. “We have a big franchise in Europe, and we will take that call and talk to them about how we can help them in Europe.”
(Updated to add IPO details in fifth paragraph. Previous version corrected first and second paragraphs to clarify that reuse technology is not related to carbon markets.)
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