Nasdaq aims to launch its custody services for digital assets like Bitcoin by the end of the second quarter of this year. The exchange operator is among those traditional financial firms looking to play a role as an intermediary in the crypto sector, which has seen the collapse of some major players.
Exchange Nasdaq seeks regulatory approval as a crypto custodian
US exchange operator Nasdaq plans to launch its own custody service for crypto assets by the end of June. The company enters the industry after a series of failures such as the bankruptcy of FTX, one of the largest cryptocurrency exchanges.
The group is now working to obtain the necessary regulatory approvals that would allow it to offer such services, Bloomberg reported on Friday, citing Ira Auerbach, senior vice president and head of Nasdaq Digital Assets.
Nasdaq has already applied to the New York Treasury Department to create a limited purpose trust to oversee the new crypto business, the executive revealed in an interview in the French capital.
The initiative was first announced in September. It represents the first entry into the crypto economy for the company, which operates the second largest American stock exchange by market capitalization of the shares traded.
The realization of the project will start with the custody of the leading cryptocurrencies Bitcoin (BTC) and Ether (ETH), before expanding the range of services offered by the Group’s Digital Assets Division. The plan is to eventually provide execution for financial institutions.
The crypto winter caused by falling prices also affected banks exposed to digital assets, leading to the collapse of crypto-friendly Silvergate Bank and Silicon Valley Bank in the US
In the crypto market, Nasdaq will join major financial firms such as BNY Mellon and Fidelity in offering cryptocurrency custody, brokerage services or tokenization of traditional assets to take advantage of related technologies.
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Banks, Bitcoin, BTC, Crashes, Crypto, Crypto Assets, Crypto Exchange, Crypto Industry, Crypto Market, Crypto Winter, Cryptocurrencies, Cryptocurrency, Custodian, Custody, Custody Services, Digital Assets, ETH, Ether, Exchange, Exchange Operator, ftx, Nasdaq, Stock Exchange
Do you expect more big financial companies to enter the crypto space this year? Tell us in the comment section below.
Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchen’s quote: “Being a writer is what I am, not what I do.” Along with crypto, blockchain and fintech, international politics and business are two other sources of inspiration.
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