Nasdaq Backs Up Bitcoin-Based Exchange

Bitcoin-based startup Noble Markets is looking to make trading digital currencies available to traditional investors by creating an exchange that will restore confidence in cryptocurrency trading.

The company announced on Tuesday that it would be powered by Nasdaq OMX Group Inc.'s NDAQ x-stream trading system and that the 40-year old company would also help Noble with its marketing needs.

Restoring Trust

Noble CEO John Betts told The Wall Street Journal that he believes investors will see Nasdaq's participation as a sign that the exchange is trustworthy and be more willing to participate in digital currency trading.

Betts also said his experience developing trading platforms at financial heavy-hitters Goldman Sachs and Morgan Stanley help him identify with Noble's target customers, corporate and institutional investors.

The failure of exchanges like Mt. Gox has created a sense of mistrust around bitcoin investment, but Noble promises to protect investors by holding investors' money in transparent accounts that will be monitored by third party institutions.

Related Link: Response To UK Treasury's Involvement In Bitcoin Is Widely Positive

A Good Deal

The partnership between Noble and Nasdaq has been touted as mutually beneficial.

While Noble gains notoriety and trust by working with a well-known exchange, Nasdaq is able to dabble in the cryptocurrency space without putting its exchange at risk.

Nasdaq's Executive Vice President of Market Technology Lars Ottersgard said the company was looking forward to being a part of Noble's cutting edge technology and addressing the growing need for trustworthy exchanges in the digital currency space.