Crypto Startup Bcause LLC To Use Nasdaq’s Trading, Clearing and Market Surveillance Technology

In a press release which took place on March 13th, Nasdaq announced that BCause LLC, a start-up from Virginia, USA will be using Nasdaq’s trading, clearing and market surveillance technology for its spot cryptocurrency market. It is all set to launch via Nasdaq’s Financial Framework platform in the first half of 2019 according to reports.

According to the press release, Bcause will be “the only venue to serve as a one-stop shop for all parts of the digital currency value chain,” including a digital mining facility, cryptocurrency trading and a derivatives clearinghouse. The market is scheduled to begin trading by June.

Fred Grede, CEO of Bcause, believes that the new crypto spot market with upgraded technologies will attract a broad range of users, including both experienced financial investors as well as crypto enthusiasts, who may be new to traditional financial markets.

Speaking on behalf of Nasdaq was, Paul McKeown, senior vice president and Head of Marketplace Operators & New Markets. He said,

“By leveraging the Nasdaq Financial Framework, Bcause will have the scalability and modular functionality to introduce new micro-services and expand its business offerings to meet industry demands and the evolution of the digital assets economy.”

The company has already applied for a license from the U.S. Commodity Futures Trading Commission (CFTC), aiming to become a designated contract market and to establish a derivatives clearing organization later.

According to the website for Bcause, which also has operations in Chicago, the company raised $1 million of seed money in 2015 followed by $5 million of Series A equity in 2017. The company opened a mining facility in Virginia Beach last year, according to the website.

As of January 31 this year, seven crypto exchanges were reportedly using the technology of Nasdaq for monitoring their markets. Prior to Bcause, just two of the collaborations had been publicized — the Winklevoss twins’ Gemini exchange and Vctrade, run by Japanese financial services giant SBI Holdings.