Nasdaq to Launch Crypto Custody Services by End of Q2

Five months after launching its digital asset services division, top securities marketplace, Nasdaq, now expects to launch its cryptocurrency custody services by the end of the second quarter of this year. Bloomberg reports that the Wall Street giant has applied for a limited-purpose trust company charter from the New York financial services regulator.

Nasdaq Eyes First Major Crypto Project

Ira Auerbach, the Head of Nasdaq Digital Assets, told the outlet in Paris that the stock exchange group will make sure to obtain all needed regulatory permits as well as install requisite technical infrastructure. The launch of the custody services will be the exchange operator's first major project in the crypto industry.

Nasdaq first announced its intention to diversify into the digital asset industry in September last year, noting that it plans to launch crypto services for institutions. Finance Magnates reports that the trading venue said it does have any immediate plans to launch crypto trading services. Nasdaq had said the decision will be finalized based on the regulatory landscape and industry competition. However, Auerbach in a new interview told Bloomberg that the company will expand its suite of offerings over time to include services such as execution.

Already, Nasdaq provides marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings and crypto-related index solutions for tradable products. However, the firm believes it is “well-positioned to accelerate broader adoption and drive sustainable growth” in the digital assets industry.

Institutions Join the Crypto Race

Over the last few years, the number of Wall Street giants stating interest in the cryptocurrency industry has been on the rise, with Nasdaq being the latest. Early last year, BNY Mellon, one of the oldest banks in the United States, announced plans to launch a crypto custody platform.

Furthermore, other top US financial services corporations, such as Fidelity and JPMorgan, are directly or indirectly involved with crypto businesses.

Meanwhile, a recent study by Eurex, one of the world’s largest derivatives exchanges, found that institutional investors are keen on sticking with the digital asset industry despite a chaotic 2022.