Now institutional investors are facing two major problems: they need reliable cryptocurrency storage facilities and stable supplies of accurate quotes from stock exchanges. Immediately two news suggests that the situation does not go unnoticed. Indices on Bitcoin and Ethereum appeared on the Nasdaq exchange, and the CSD global association of central depositories is working to create a secure storage service.
The Global Index Data service already has about 4000 different financial instruments. However, now it has two new assets - BLX and ELX. These are composite stock indexes of bitcoin and ethereum cryptocurrency. It is expected that in the near future another one will be added to them - RXL. It will display the cost of Ripple tokens in global financial markets.
The Global Index Data service is intended for use by financial companies in the organization of trade. Includes the most liquid exchange instruments.
The transmission of cryptocurrency exchange indices was caused by the need to provide a transparent and accessible mechanism for tracking quotes on cryptocurrencies. The program of transmission of liquidity indexes was launched in 2015, and since then its popularity has been constantly growing
Perhaps in 2019, it will be possible to store cryptocurrency in the Central Securities Depositories. This is what will be discussed at the CSD meeting. The association brings together organizations from 30 countries in Europe and Asia.
The problem of storing cryptocurrency assets is complicated by the very structure of the blockchain. The loss of the password from the wallet threatens with the impossibility to gain access under any circumstances. Therefore, CSD plans to immediately create a reserve fund in case of force majeure.
In the CSD recognize that the problem with the storage of cryptocurrency and tokenized financial assets is now coming to the fore. For decades, depositaries have been creating security technologies for securities and other financial instruments. Now they are faced with a problem, the solution of which will take some time. The old methods do not quite meet the new needs.
Already several times the US Securities Commission has rejected or postponed decision making on Bitcoin-ETF contracts. The main complaint to the applicants was that they could not ensure the proper quality of the repositories and could not provide a reliable supplier of quotations.
The applicants tried to solve these issues on their own, creating their own custodial services and composite stock market cryptocurrency indexes. However, the SEC still have questions about their reliability and objectivity. Institutional investors require their own, special conditions.
The latest news suggests that the necessary infrastructure will be created sooner or later. Moreover, some SEC requests are satisfied now. And then we can expect an influx of new customers to the cryptocurrency market.