• Nasdaq Inc. is taking its first steps into the world of crypto by launching a custody service for digital assets by the end of Q2.
• Nasdaq applied to the New York Department of Financial Services for a limited-purpose trust company charter to oversee its new endeavour.
• The exchange operator’s plans include providing services such as safekeeping, execution, liquidity and support for new markets.
Nasdaq Inc. Enters Crypto Space
Nasdaq Inc., a global exchange group, is taking its first steps into the world of crypto by launching a custody service for digital assets. Despite multiple bankruptcies in the industries, Nasdaq is pushing ahead to ensure all the technical infrastructure and regulatory approvals are in place in order to provide secure services for digital assets.
Custody Service Launch
The exchange operator expects its custody service to launch by the end of Q2 this year and has already applied to the New York Department of Financial Services for a limited-purpose trust company charter to oversee its new endeavour. Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, believes that this step will enable mass institutional adoption into crypto and “bring trust and brand” to the market from Nasdaq. Additionally Tal Cohen, another executive at Nasdaq stated that their plans include offering services such as safekeeping, execution, liquidity and support for new markets off the back of their custody service launch.
Nasdaq joins likes of Fidelity and BNY Mellon as other large financial firms offering crypto custody services. Fidelity received approval to provide such services in 2021 whereas BNY Mellon also announced their own platform called Digital Asset Custody Platform in October last year.
Despite these developments there remain some risks associated with investing into cryptocurrency or digital assets which should be taken into consideration before any decisions are made about investment or trading activity within this space.
This article is provided for informational purposes only and is not offered or intended to be used as legal, tax, investment, financial or other advice