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Nasdaq Aims To Launch Crypto Custody Services In The Second Quarter

The exchange’s move into crypto would mark a change from its traditional business of dealing in stocks and bonds.

By Staff

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Global exchange Nasdaq Inc. plans to launch custody services for Bitcoin and Ether in the next three months, according to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets.

In order for the new company to begin operations before the end of the second quarter, Auerbach said the company is working to complete the technical infrastructure and secure the last regulatory approvals. A representative for Nasdaq declined to provide more context.

The business named Auerbach to lead Nasdaq Digital Assets, a new division, and stated in September that it was looking to establish custody services.

“Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” CEO Adena Friedman said in a statement at the time.

For the new services, Nasdaq submitted an application for a limited-purpose trust company charter to the New York Department of Financial Services. According to Auerbach, the company eventually wants to provide a comprehensive range of services for the division of the group that deals with digital assets, including execution for financial institutions.

By entering the cryptocurrency market, the exchange would depart from its core competency of trading stocks and bonds. Additionally, it would aid in bridging the gap in cryptocurrency custody services left by FTX’s demise the previous year.

In a statement released in September last year, the company stated; “Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” said Adena Friedman, President and Chief Executive Officer, Nasdaq.

“The technology that underpins the digital asset ecosystem has the potential to transform markets over the long term. To deliver on that opportunity, our focus will be to provide institutional-grade solutions that bring greater liquidity, integrity, and transparency to support the evolution,” he further stated.

Nasdaq Digital Assets will initially develop an advanced custody solution that will incorporate liquidity and execution services to address industry challenges around connectivity, availability, and efficiency. Nasdaq’s custody solution will bring together the best attributes of hot and cold crypto wallets through an innovative technology offering, which will provide a high degree of accessibility and scalability without compromising security. Nasdaq’s offering is subject to regulatory approval in applicable jurisdictions.

“Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth,” said Tal Cohen, Executive Vice President and Head of North American Markets, Nasdaq. 

He added, “With our trusted brand and strong track record as a technology provider for the global capital markets, Nasdaq is uniquely placed to address industry pain points by improving liquidity, scalability, and resiliency, with the goal to engender greater trust and confidence in the digital assets ecosystem.”


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