Nasdaq Inc. is set to launch its crypto custody services by the end of Q2 2023, joining the ranks of traditional financial institutions that are venturing into the cryptocurrency space.
Custody services are a crucial component for institutional adoption of cryptocurrencies as they provide secure storage of digital assets. According to Ira Auerbach, Nasdaq’s Senior Vice President and Head of Digital Assets, the company has submitted an application for a limited-purpose trust company charter to the New York Department of Financial Services to oversee its custody services.
Nasdaq’s foray into the crypto space comes after a series of bankruptcies in the industry, which presented an opportunity for traditional finance companies to offer safekeeping services for digital assets. In Q4 2022, BNY Mellon launched its custody platform for digital assets, while Fidelity and BNP Paribas also entered the space, providing similar services.
Nasdaq has a history of involvement in the cryptocurrency market, having previously provided market surveillance technologies to various crypto exchanges. The launch of its crypto custody services is expected to attract a large number of institutional investors who have been waiting for a trusted custodian to enter the market. The move is also expected to further legitimize the industry and address one of the biggest obstacles to the institutional adoption of cryptocurrencies: security.
Nasdaq’s custody services are designed to provide secure storage of digital assets, which is an essential component for the institutional adoption of cryptocurrencies. The entrance of traditional financial players into the crypto industry, such as Nasdaq, is expected to boost the overall adoption of cryptocurrencies. With the launch of Nasdaq’s crypto custody services, institutional investors can now have a trusted custodian to safeguard their digital assets, further legitimizing the industry.
