Nasdaq Aims to Launch Crypto Custody Services in Second Quarter – By the end of June, Nasdaq, the U.S. exchange operator, intends to introduce its own custody services for cryptocurrency assets. This move by the company comes in the wake of several industry setbacks, including the insolvency of FTX, which was one of the biggest crypto exchanges.
According to a report by Bloomberg on Friday, Nasdaq Digital Assets’ Senior Vice President and Head, Ira Auerbach, stated that the group is currently seeking regulatory approvals to offer such services. During an interview in Paris, the executive disclosed that Nasdaq has submitted an application to the New York Department of Financial Services for a limited-purpose trust company charter that would supervise the company’s new crypto venture.
In September, the company that operates the second-largest American stock exchange in terms of market capitalization of traded shares made its first foray into the crypto economy with the announcement of this initiative. Initially, the project will involve securely storing the top cryptocurrencies, bitcoin (BTC) and ether (ETH), with plans to broaden the range of services provided by the company’s digital assets division. The ultimate goal is to offer financial institutions execution services.
The decline in cryptocurrency prices during the “crypto winter” also impacted banks that had exposure to digital assets. As a result, the crypto-friendly Silvergate Bank and Silicon Valley Bank in the United States collapsed. Nasdaq will be joining major financial firms such as BNY Mellon and Fidelity in the crypto market, offering services such as custody for cryptocurrencies, intermediary services, and tokenization of traditional assets, in order to leverage the benefits of associated technologies.