Global stock exchange Nasdaq Inc. is preparing to launch its digital asset custody services by the end of the second quarter of this year, according to Bloomberg.
Nasdaq expects to launch crypto custody services this year, joining a growing group of traditional financial firms entering the sector after a series of bankruptcies. https://t.co/Jz8TuFARcs
โBloomberg (@business) March 24, 2023
As reported Per Bloomberg, the exchange group applied for a limited purpose trust company charter from the New York Department of Financial Services, which would oversee the new business. Nasdaq Senior Vice President and Head of Nasdaq Digital Assets Ira Auerbach reportedly revealed this in an interview in Paris, stating that the group is committed to ensuring that all necessary regulatory approvals and technical infrastructure are in place.
Initially announced in September, the project will be the first major venture of the exchange operator in the crypto industry. The first step for the digital asset division of Nasdaq will be to safeguard Bitcoin (BTC) and ether (ETH), with plans to eventually build out a broad suite of services for the group's digital assets division, including execution for financial institutions, Auerbach reportedly shared.
With traditional financial institutions stepping up to fill the void left by bankruptcies in the cryptocurrency industry, Nasdaq's entry could potentially be a game changer for the sector. Its reputation and size in the global exchange market could help boost institutional investor confidence in the crypto market, paving the way for more traditional financial institutions to follow suit.
Related: Unstable currencies: decouplings, bank runs and other risks loom
Nasdaq is ready to join BNY Mellon and Fidelity as part of other large financial companies that offer custody of cryptocurrencies.
In 2022, Cointelegraph reported that BNY Mellon, the oldest bank in the United States, had launched crypto services. The 238-year-old bank formed an enterprise digital asset unit in 2021 to develop crypto solutions and a platform to bridge custody of digital and traditional assets.
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