The world’s second-largest stock exchange, Nasdaq, is planning to offer cryptocurrency custody services to institutional clients, according to a report by Bloomberg on Tuesday, citing a statement from Tal Cohen, Nasdaq’s executive vice president and head of North American markets.
Nasdaq to Offer Institutions Crypto Custody Services
According to the report, the company has established a digital assets unit dubbed “Nasdaq Digital Assets,” to initially offer custody services for Bitcoin (BTC) and Ether (ETH) to institutional investors. Nasdaq has tapped Ira Auerbach, former Global Head of Gemini Prime, to lead the unit.
“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,” Auerbach said.
Nasdaq’s new offering is still in the works as it is subject to regulatory approval by the New York Department of Financial Services (NYDFS), the report stated.
Cohen noted that aside from offering crypto custody services, the company is also looking to offer other related services in the future.
“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,” he said.
By offering these services, Nasdaq will now be competing with crypto firms such as Coinbase, Anchorage Digital, and BitGo, which already offer custody services in BTC and ETH to U.S. institutional investors.
The Bloomberg report stated that Nasdaq is also “exploring partnerships” with crypto-native firms, although it has no plans for acquisitions in the short term.
Major Financial Institutions Enter Crypto
Nasdaq has now joined a growing list of major financial institutions in the United States offering crypto-related services due to investors increasing interest in gaining exposure to digital asset markets.
In April, financial services company Fidelity Investments revealed plans to allow investors to put a bitcoin account in their 401(k) retirement savings account later this year.
As Coinfomania reported last month, the world’s largest asset manager, BlackRock partnered with leading crypto exchange Coinbase to give institutional clients direct access to crypto.
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Source: https://coinfomania.com/nasdaq-to-offer-crypto-custody-services/