Nasdaq, one of the biggest stock exchanges in the world, has announced plans to launch crypto custody services by the end of June 2023. This move comes as demand for crypto-related services continues to grow despite the increased regulatory pressure and market turbulence.
.png "Nasdaq Set to Launch Crypto Custody Services in 2023")
Nasdaq, the world-renowned stock exchange, has announced its plan to launch crypto custody services later this year. This move is aimed at capitalizing on the growing demand for crypto-related services and driving further innovation in the space.
According to a Bloomberg report on March 24, Nasdaq's crypto custody services are already underway, and the launch is expected to occur by the end of June 2023. Nasdaq is developing an advanced custody solution for digital assets, with an initial focus on Bitcoin (BTC) and Ethereum (ETH) custody. The exchange also aims to provide crypto services to financial institutions.
In September 2022, Nasdaq announced the establishment of Nasdaq Digital Assets, a division dedicated to offering crypto custody services. The move was a competitive one, especially since other financial giants such as Fidelity Investments, BNY Mellon, and BlackRock have also entered the crypto space.
Speaking with Bloomberg, Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets, said that the New York-based stock exchange has been developing an advanced custody solution for digital assets. Additionally, Nasdaq has applied to provide digital asset custody services and is awaiting approval from the New York Department of Financial Services.
Nasdaq's entry into the crypto space is not surprising, given that the exchange has already partnered with some crypto exchanges to provide them with market surveillance technology. The technology enables these exchanges to monitor activities on their platforms and detect any fraudulent or manipulative practices, improving their overall security measures.
Nasdaq's move into the crypto space is part of a larger trend of major players in traditional finance recognizing the significant demand for crypto-related services. Other players include BlackRock, the world's largest asset manager, which partnered with Coinbase and launched a Bitcoin trust fund in 2020 to give high-income clients access to cryptocurrencies.
Despite the regulatory uncertainty and market turbulence in the crypto industry, these companies are taking action to meet the demand for crypto-related services. The growing interest in the sector is simply too big to ignore, and the moves by these major players are likely to drive further innovations in the crypto space and encourage more institutional investors to enter the market.
In addition to providing crypto custody services, Nasdaq aims to provide advanced solutions such as market technology and crypto-related indexes for tradable products to serve the crypto ecosystem. The exchange is well-established and popular with stock traders, overseeing multiple US and global equity markets, and is now taking a significant bet on the cryptocurrency.
