Nasdaq Targets Crypto Custody by the End of Q2

Nasdaq Inc. is taking its first steps into the world of crypto. The exchange operator expects its custody service for digital assets to launch by the end of Q2.

Despite the multiple bankruptcies in the industries, Nasdaq is stepping into the digital asset space. Bloomberg reports the exchange operator is expected to step into the role of the crypto middleman by providing custody services for digital assets.

In an interview in Paris, Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said Nasdaq is pushing ahead to ensure all the technical infrastructure and regulatory approvals are in place. The global exchange group has already applied to the New York Department of Financial Services for a limited-purpose trust company charter to oversee its new endeavour.

Auerbach said the safekeeping of Bitcoin and Ether would just be the first step to building various services for Nasdaq’s digital asset division. He added that the company would eventually like to include the execution for financial institutions.

Nasdaq revealed its plans to launch the crypto service in September, emphasizing it would work alongside crypto exchanges to enable the more efficient trading of Bitcoin and Ether. At the time, Auerbach said:

We believe this next wave of the revolution is going to be driven by mass institutional adoption. I can think of no better place to bring that trust and brand to the market than Nasdaq.

Tal Cohen, a Nasdaq executive, said:

Custody is foundational. Off the back of custody, we can start to develop other solutions, offer execution services, liquidity services, and think about how we support new markets.

Nasdaq joins like likes of Fidelity and BNY Mellon as other large financial firms offering crypto custody services. Fidelity received approval to provide such services in 2021, and BNY Mellon announced the launch of its Digital Asset Custody platform in October.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.