By the end of Q2, Nasdaq, a major exchange operator, is apparently getting ready to introduce its custody services for digital assets. This will be the exchange operator’s first big foray into the cryptocurrency sector.
Nasdaq Dives Into the Cryptocurrency Arena
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets at Nasdaq, revealed that the company has sought for a limited-purpose trust company charter from the New York Department of Financial Services to manage the new venture. The exchange is dedicated, according to Auerbach, to obtaining all required technical infrastructure and regulatory licenses.
Nasdaq’s section for digital assets will initially concentrate on securing Bitcoin and Ether as part of the project, which was first announced in September. In the future, the exchange operator hopes to create a wide range of services for its division for digital assets, including implementation for financial institutions.
With its decision to provide crypto safeguarding, Nasdaq joins other significant financial institutions—like BNY Mellon and Fidelity—that have already made a foray into the cryptocurrency market.
The introduction of its cryptocurrency services was announced by BNY Mellon, the oldest bank in the country, in 2022. With an emphasis on developing cryptocurrency solutions and a platform that crosses the distinction between digital and conventional asset custody, the 238-year-old organization created its own digital assets section in 2021.
These actions show BNY Mellon and Nasdaq’s commitment to embracing digital assets and providing secure storage options to their clients, and they represent significant advancements in the crypto market.
The move also comes at a time when a number of significant cryptocurrency exchanges, including FTX, Coinbase, and Binance, have either shut down or are under regulatory examination. Particularly, Binance has been accused of engaging in unlawful financial behavior, and US senators have requested openness from the company.
Coinbase has also received a warning from the SEC with regard to some of the digital goods and services it lists. All of this offers Nasdaq an excellent chance to enter the industry and provide a reliable platform for trading companies and experienced investors.
Final Thoughts
The entry of Nasdaq in the crypto world, with its standing and size in the global exchange market, has the potential to be a game-changer for the cryptocurrency industry, increasing institutional investor confidence and opening the door for additional traditional financial institutions to swiftly follow suit, particularly as traditional financial institutions are starting to fill the void left by bankruptcy in the crypto industry.