Nasdaq to Launch Crypto Custody Services by End of Q2: A Game-Changer for the Crypto Sector
Nasdaq Inc., a global securities marketplace, is reportedly set to launch its custody services for digital assets by the end of Q2 2023. This move marks the exchange operator’s first significant venture into the crypto industry, and it could potentially be a game-changer for the sector. According to Bloomberg, the exchange group has already applied for a limited-purpose trust company charter from the New York Department of Financial Services to oversee the new business. Nasdaq’s Senior Vice President and Head of Nasdaq Digital Assets, Ira Auerbach, disclosed this in an interview in Paris, where he reiterated the group’s commitment to ensuring all necessary regulatory approvals and technical infrastructure are in place.
The project was initially announced in September last year, and Nasdaq’s digital assets division’s first step will be to safeguard Bitcoin (BTC) and Ether (ETH). The exchange operator plans to eventually build a broad suite of services for the group’s digital assets division, including execution for financial institutions.
NEW‼️ Nasdaq to launch #Bitcoin and crypto custody services in June – Bloomberg pic.twitter.com/Bzz6EqrINy
— Radar🚨 (@RadarHits) March 24, 2023
As traditional financial institutions step up to fill the gap left by bankruptcies in the crypto industry, Nasdaq’s entry could significantly boost institutional investor confidence in the crypto market. The exchange operator’s reputation and size in the global exchange market could pave the way for more traditional financial institutions to follow suit.
Nasdaq’s move into the crypto custody business comes after other large financial firms like BNY Mellon and Fidelity started offering similar services. In 2022, BNY Mellon, America’s oldest bank, launched its crypto services, forming an enterprise digital assets unit to develop crypto solutions and a platform to bridge digital and traditional asset custody.
Conclusion
Nasdaq’s entry into the crypto custody business is expected to have far-reaching implications for the sector. The exchange operator’s reputation and size in the global exchange market could help boost institutional investor confidence in the crypto market, paving the way for more traditional financial institutions to follow suit. With the necessary regulatory approvals and technical infrastructure in place, Nasdaq’s digital assets division is poised to offer a broad suite of services for financial institutions, starting with the safeguarding of Bitcoin and Ether.
