Nasdaq Establishes Crypto Unit — The second-largest stock exchange in the world, Nasdaq (Nasdaq: NDAQ), announced the opening of “Nasdaq Digital Assets” on Tuesday. According to the announcement, Nasdaq Digital Assets will first create an institutional-grade custody system, and it also says: “Nasdaq’s custody solution will bring together the best attributes of hot and cold crypto wallets.”
The new cryptocurrency division will initially provide institutional investors with custody services for bitcoin (BTC) and ether (ETH), according to Tal Cohen, head of North American Markets at Nasdaq, who spoke to Bloomberg. The new unit will be led by Ira Auerbach, who previously oversaw prime broker services at cryptocurrency exchange Gemini. The regulatory approval of the offering by Nasdaq is required in the relevant jurisdictions.
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Adena Friedman, president and CEO of Nasdaq, explained: “Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products.”
Cohen noted: “Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth.”
Nasdaq also announced Tuesday the expansion of its “anti-financial crime technology with new capabilities and coverage for the cryptocurrency ecosystem.” The company detailed: “Through its Verafin and Surveillance product offerings, Nasdaq has launched a comprehensive suite of crypto-specific detection capabilities.”
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According to the announcement, the new tools would allow the company to “effectively mitigate risks and provide continuous monitoring of anti-money laundering, fraud detection, and market abuse across traditional and digital assets, fiat and cryptocurrency, and on- and off-chain activities.”
“As the world of digital assets evolves and converges with traditional finance, it is crucial to provide the necessary portfolio of technology solutions designed to safeguard participants across the financial ecosystem,” said Jamie King, head of Anti-Financial Crime at Nasdaq.
