Nasdaq Inc. is making significant investments in technology to protect against financial crime, according to CEO Adena Friedman. The company’s anti-financial crime business is experiencing rapid growth, with a year-over-year increase of approximately 20%. Nasdaq is leveraging artificial intelligence to enhance its offerings, allowing for quicker and more accurate identification of criminal behavior in the industry. The firm is collaborating with banks, exchanges, and brokerage firms to deploy the software and eliminate threats.
Under Friedman’s leadership, Nasdaq has diversified its business beyond being solely an exchange. The company has strategically focused on developing offerings with more predictable revenue streams, rather than relying solely on trading and market volatility. In 2020, Nasdaq completed its largest acquisition to date, acquiring software provider Adenza for $10.5 billion to expand its financial services capabilities.
Friedman also addressed the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission. Nasdaq, along with other exchanges, has filed to list the new product on their platforms. Friedman noted that this regulated and liquid ETF offering provides increased accessibility to Bitcoin without direct ownership, opening the door for broader participation in the asset class.
Looking ahead, Friedman predicts a more vibrant backdrop for initial public offerings (IPOs) in 2024. Despite the high cost of capital, she expressed optimism, citing the interest of promising companies, particularly in the biotechnology sector. Friedman also highlighted the potential role of artificial intelligence in differentiating businesses and attracting investment.
The number of IPOs will ultimately depend on the overall economic environment. With inflation decreasing and the potential for declining interest rates, Friedman believes that investors are feeling more confident in deploying capital. Nasdaq, with its expanded anti-financial crime technology and diverse offerings, is well-positioned to navigate the evolving landscape of the financial industry.
The source of the article is from the blog lisboatv.pt