• Nasdaq is planning to launch a crypto custody service by the end of the second quarter.
• The exchange will offer services for Bitcoin and Ethereum.
• It will eventually offer execution services to financial institutions.
Nasdaq Plans To Launch Crypto Custody Service
Nasdaq Stock Exchange is planning to launch a crypto custody service by the end of the second quarter, Bloomberg reported on 24 March. The exchange plans to launch its digital assets business with custody services for Bitcoin and Ethereum, the two most valuable cryptocurrencies by market capitalization.
Obtaining Regulatory Approvals
Nasdaq is currently working to obtain from the New York Department of Financial Services a limited-purpose trust company charter for its new crypto division. Ira Auerbach, Senior Vice President and Head of Digital Assets at Nasdaq, told Bloomberg that the exchange has been working on establishing solid infrastructure and securing the necessary regulatory approvals that will allow it to serve crypto customers.
Custody As First Step
Auerbach stated that custody is the first move in its plan to establish a wide range of digital asset services. He also stated that as the crypto division grows, it will eventually offer execution services to financial institutions.
TradFi Institutions Moving To Crypto Segment
Nasdaq is not the first traditional financial (TradFi) institution to enter the crypto segment after years of speculation. Fidelity Investments, BNY Mellon, and BlackRock have been offering crypto services for quite some time now. New York-based banking institution BNY Mellon launched institutional crypto custody services in October 2022 and has been steadily expanding its digital assets division. Boston-based financial services corporation Fidelity is also offering crypto trading and custody services to retail clients now, filling the void left by traditional banks such as Silvergate which had recently served the crypto industry. New York-based investment firm BlackRock which manages over $10 trillion in assets also entered this month’s market with CEO Larry Fink praising digital assets in his annual letter to investors.
Overall, Nasdaq joining giants such as Fidelity Investments, BNY Mellon, and BlackRock in offering cryptoservices marks an important step towards large scale adoption of cryptocurrency technologies into mainstream finance markets worldwide