Nasdaq is aiming to roll out its custody services for digital assets such as bitcoin by the end of the second quarter of the year. The exchange operator is one of the traditional financial firms that want to become intermediaries in the crypto sector, following the collapse of some major players.
Stock Exchange Nasdaq Pursues Regulatory Approval as Crypto Custodian
U.S. exchange operator Nasdaq is aiming to launch its own custody services for cryptocurrencies by the end of June. The move comes in the wake of a series of major players shutting down, such as the bankruptcy of FTX, one of the largest crypto exchanges.
The group is now working to obtain the necessary authorizations from regulatory agencies that will permit it to offer such services, Bloomberg reported on Friday, citing Ira Auerbach, Nasdaq’s senior vice president and head of Digital Assets.
Nasdaq has already applied to the New York Department of Financial Services for a limited-purpose trust company charter, which would manage the new crypto business, the executive revealed in an interview in the French capital.
The initiative was first announced in September. It marks the first foray into the crypto market for the company that operates the second-largest American stock exchange by the total market capitalization of the shares traded.
The execution of the project will start with the safekeeping of major cryptocurrencies, bitcoin (BTC) and ether (ETH), before expanding the range of services provided by the group’s digital assets division. The plan is to eventually offer execution services to financial institutions.
The crypto winter caused by falling prices affected banks exposed to digital assets as well, leading to the collapse of the crypto-friendly Silvergate Bank and Silicon Valley Bank in the U.S.
In the crypto market, Nasdaq will join large financial firms, such as BNY Mellon and Fidelity, that offer custody for cryptocurrencies, intermediary services, or tokenization of traditional assets to take advantage of related technologies.
Do you anticipate more major finance firms entering the crypto space this year? Let us know in the comments section below.
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