Nasdaq, a leading global securities marketplace, is reportedly preparing to launch its custody services for digital assets by the end of Q2 this year. As we received from reports, it is for the first time that the exchange group has ventured into the cryptocurrency industry. The New York Department of Financial Services (NYDFS) will oversee the new business for which Nasdaq has applied for a limited-purpose trust company charter.
According to Ira Auerbach, Senior Vice President and head of Nasdaq Digital Assets, the group ensures all required regulatory clearances and technological infrastructure are in place for the new venture. Nasdaq’s digital assets division’s first step will be to secure Bitcoin and Ether, with plans to develop a comprehensive range of services for the division, including execution for financial institutions.
As the crypto industry faces bankruptcies, traditional financial institutions are stepping in to fill the void. Nasdaq’s entry into the market could significantly alter the game for the sector. Given its reputation and size in the global exchange market, Nasdaq’s involvement could enhance institutional investor confidence in cryptocurrency. This could pave the way for more traditional financial institutions to follow suit.
BNY Mellon and Fidelity are other large financial firms offering crypto safekeeping. Last year, BNY Mellon made a significant move into cryptocurrency by launching its crypto services. To aid in developing crypto solutions and a platform that bridges digital and traditional asset custody, the bank created an enterprise digital assets unit. This strategic move marked the bank’s entry into the rapidly growing digital asset market and demonstrated its commitment to providing its clients with comprehensive financial services that meet their evolving needs.
Nasdaq’s foray into the crypto industry is a significant development, and it highlights the growing acceptance of digital assets by traditional financial institutions. The move could be a significant step towards mainstream adoption of cryptocurrencies, as Nasdaq’s entry could potentially lead to increased institutional investor participation in the crypto market. The launch of Nasdaq’s custody services for digital assets is eagerly awaited by investors and industry experts alike. It will be interesting to see how the market reacts once the services are rolled out later this year.
