Nasdaq To Launch Cryptocurrency Custody Services By Q2 End
- Nasdaq plans to launch custody services for digital assets by the end of Q2.
- The firm aims to offer a secure and well-regulated platform for cryptocurrency traders and investors by providing custody services for digital assets.
As per Bloomberg, Nasdaq Inc., a leading global exchange group, announced its plan to launch custody services for digital assets by the end of Q2.
With this announcement, Nasdaq aims to offer a secure and well-regulated platform for cryptocurrency traders and investors, and the company is pushing ahead to get all the necessary technical infrastructure and regulatory approvals in place.
As part of its preparation, Nasdaq has applied for a limited-purpose trust company charter from the New York Department of Financial Services. This charter would oversee the new business and help it to build a broad suite of services for its digital assets division, eventually including execution for financial institutions. The project was initially announced in September and marks the first major foray into the world of crypto for the exchange operator.
In an interview in Paris, Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said that safekeeping Bitcoin and Ether would be the first step to building a broad suite of services for the company’s digital assets division. Auerbach’s comment suggests that the company is ambitious about its plans. Nasdaq is taking the necessary steps to ensure it can provide a secure and reliable platform for its clients.
Following the collapse of cryptocurrency prices and the fall of the FTX exchange in November, traditional finance firms like Nasdaq are stepping up as crypto middlemen. Nasdaq, along with BNY Mellon and Fidelity, will offer crypto safekeeping to provide a secure and well-regulated platform for cryptocurrency traders and investors.
While some traditional finance firms are focusing their efforts on tokenizing traditional assets like bonds, Nasdaq is taking a different approach. The company is betting that crypto’s underlying technology will make trading and processing digital assets more efficient. By offering custody services for digital assets, the firm is positioning itself to become a major player in the crypto space.
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