Nasdaq plans to roll out its custody services for digital assets such as Bitcoin by the end of Q2 2023, further entrenching traditional financial firms in the crypto sector. The move comes after several major players were forced to collapse due to market downturns.
Nasdaq to launch crypto custody services
Nasdaq, a leading U.S. exchange operator, is taking steps to launch its own custody services for crypto assets by the end of June. This move comes considering several failed attempts in the cryptocurrency industry, such as FTX’s bankruptcy. To make this happen, Nasdaq has applied for a limited-purpose trust company charter from the New York Department of Financial Services, as detailed in an interview with Ira Auerbach, senior vice president and head of Nasdaq Digital Assets in Paris. If all goes according to plan, this new crypto business could be up and running before long.
In September, Nasdaq announced its venture into the crypto economy for the first time. The leading exchange company— which runs the second-largest American stock exchange by market capitalization of traded shares — will begin providing custodial services for Bitcoin (BTC) and Ether (ETH), eventually extending its array of digital asset services to financial institutions. This move comes after the crypto winter caused by falling prices left banks exposed to digital assets vulnerable, even leading to the collapse of crypto-friendly Silvergate Bank and Silicon Valley Bank in the U.S. For crypto markets, Nasdaq will join large financial firms such as BNY Mellon and Fidelity in offering custody services, intermediary services, and tokenization of traditional assets to capitalize on the benefits of blockchain technology.