Nasdaq is planning to introduce custody services for cryptocurrencies
- Nasdaq Aims to Launch Crypto Custody Services in Second Quarter
- Nasdaq intends to launch its custody services for digital assets like bitcoin by the end of this year’s second quarter. The exchange operator is among those traditional financial firms that want to play a role as intermediaries in the crypto sector which saw the collapse of some major players.
- The group is now working to obtain the necessary approvals from regulatory bodies that will allow it to provide such services, Bloomberg reported on Friday, quoting Ira Auerbach, senior vice president and head of Nasdaq Digital Assets.
Nasdaq is planning to introduce custody services
Nasdaq, the second-largest American stock exchange by market capitalization, is planning to enter the crypto industry by launching its own custody services for digital assets, such as bitcoin and ether, by the end of the second quarter of this year. The company is seeking to become an intermediary in the crypto industry, which has recently experienced the collapse of major players, such as FTX.
Nasdaq has applied to the New York Department of Financial Services for a limited-purpose trust company charter, which would enable the company to oversee its new crypto business. Ira Auerbach, the Senior Vice President and Head of Nasdaq Digital Assets, stated that the company is now working to obtain the necessary regulatory approvals to provide these services.
The move by Nasdaq is part of a growing trend among traditional financial firms to play a role in the crypto sector. The crypto market has attracted large financial institutions such as BNY Mellon and Fidelity, which offer custody for cryptocurrencies, intermediary services, and tokenization of traditional assets to leverage the benefits of related technologies.
Nasdaq’s initial plan is to begin with safekeeping bitcoin and ether before expanding the services offered by its digital assets division to include execution for financial institutions. Nasdaq’s entry into the crypto industry comes after the “crypto winter” that saw falling prices affecting banks exposed to digital assets, leading to the collapse of the crypto-friendly Silvergate Bank and Silicon Valley Bank in the US.
The launch of Nasdaq’s crypto custody services marks the company’s first inroad into the crypto economy. The move is significant for the crypto industry as it represents a potential catalyst for the wider adoption of cryptocurrencies by mainstream investors. By offering custody services for digital assets, Nasdaq is providing a regulated and secure way for investors to access the crypto market, which could lead to greater confidence in the sector and attract more institutional investors.
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