Nasdaq Inc. is set to launch its custody services for Bitcoin and other digital assets by the end of the second quarter, joining other traditional financial firms that are filling the void left by bankrupt crypto exchanges. The announcement was made by Ira Auerbach, senior vice president, and head of Nasdaq Digital Assets, during an interview in Paris.
- According to Auerbach, Nasdaq is pushing ahead to get all the necessary technical infrastructure and regulatory approvals in place.
- The exchange group has applied to the New York Department of Financial Services for a limited-purpose trust company charter, which would oversee the new business.
- This project, which was initially announced in September, will mark Nasdaq’s first major foray into crypto.
- Initially, the company plans to offer safekeeping services for Bitcoin and Ether, with a view to building a broad suite of services for its digital assets division, eventually including execution for financial institutions.
- The collapse of cryptocurrency prices has led to bankruptcies in the industry, culminating in the fall of the FTX exchange in November. As a result, traditional finance firms like Nasdaq are moving in to fill the gap.
- Nasdaq will join BNY Mellon and Fidelity, among other large financial firms offering crypto safekeeping.
- Meanwhile, other firms are focusing their efforts on tokenizing traditional assets like bonds, in the hope that the underlying technology of cryptocurrencies will make trading and processing the assets more efficient.
- Nasdaq’s entry into the crypto custody market is a significant development, given its stature in the financial industry. With its reputation for regulatory compliance and risk management, the exchange group is well-positioned to serve as a trusted middleman for institutional investors looking to enter the crypto space.
Read Also: GMEX Group Acquires ING Bank’s Crypto Custody Platform Pyctor