- Nasdaq plans to launch its digital asset custody services by the end of Q2 2023
- The group wants to expand its activities in the field of cryptocurrencies and will initially offer Bitcoin and Ether
- The digital asset custody offering will allow Nasdaq to expand its service offering in crypto, NFT and other digital assets.
Nasdaq Inc. announces plans to launch cryptocurrency custody services by the end of the second quarter of 2023. The index joins a growing list of major financial institutions that could play a mediating role in the cryptocurrency industry. cryptocurrencies following a series of bankruptcies.
Ira Auerbach, senior vice president and head of digital assets at Nasdaq, says in an interview in Paris that the exchange group is doing everything possible to set up the necessary technical infrastructure and obtain the required regulatory approvals.
Why the Nasdaq is about to enter the crypto era
Nasdaq thus joins BNY Mellon and Fidelity among the major financial institutions that have decided to join the crypto movement by offering custody services. Others focus on tokenizing traditional assets, such as bonds, in hopes that the underlying technology will make trading and processing these assets more efficient.
With support from financial giants such as Nasdaq, BNY Mellon, and Fidelity, confidence in cryptocurrencies may continue to grow, attracting new investors and helping stabilize and mature the market. The diversification of services offered by traditional players in the financial sector, such as Nasdaq, marks a turning point in the adoption of digital assets and underlines their potential to transform the sector – while instilling trust in crypto.
Safe custody of Bitcoin and Ethereum would be just the first step in building a wide range of services by the group’s digital assets division. Eventually, Nasdaq wants to offer order execution for financial institutions, according to Ira Auerbach. Nasdaq will therefore set up an ad hoc structure that will oversee this new activity.
Incidentally, Nasdaq is putting itself in a position to take over from players who have been reprimanded or even carried away by the crisis in the sector. The collapse in cryptocurrency prices led to bankruptcies that culminated in the fall of FTX in November. With the preferred digital asset exchange of trading firms and professional investors disappearing, traditional financial firms, such as Nasdaq, can more quickly reintroduce stability to the industry.
