US-based stock exchange operator Nasdaq intends to form a corporate venturing unit to make strategic investments in financial technology startups, Reuters has reported citing two people familiar with the plans.
Nasdaq operates 85 exchanges spanning 50 countries, though it also provides financial technology, data and advisory services as part of its overall offering.
The amount Nasdaq plans to commit to the fund was not disclosed, though one source told Reuters it was “modest” in comparison to the wider earnings or capital plans of the firm, which recorded almost $2.3bn in net revenue in 2016.
Although Nasdaq has not traditionally been a strategic investor, it has participated in growth-stage rounds for blockchain technology producer Chain and big data and machine learning technology developer Digital Reasoning in the past 18 months.
Reuters did not learn how much the unit plans to invest in individual companies, or at what stage, but one source confirmed that in addition to investing in startups, Nasdaq would also help them develop their technology more quickly.
Exchange operators that have already established venture capital arms include CME Group, which invests through its CME Ventures unit, and Deutsche Börse, which launched its DB1 Ventures subsidiary in June 2016.