Nasdaq to Debut Crypto Custody Services in Q2 2023, Filling Gap Left by Defunct Firms
Nasdaq, one of the world's largest stock exchange operators, is looking to make its mark in the rapidly growing world of cryptocurrency. The company announced in September of last year that it was developing a crypto custody service to meet the demands of institutional investors. Now, as reported by Bloomberg on Friday, Nasdaq is aiming to debut its crypto custody services by the end of the second quarter of 2023.
The move by Nasdaq comes as traditional finance companies seek to fill the gap left by more crypto-centric firms that have shut their doors in recent months. Exchange FTX and banks Silvergate and Signature are among the most prominent examples of such firms. Nasdaq's foray into the crypto space, however, is particularly significant given its status as a major player in the global financial market.
Nasdaq's senior vice president and head of digital assets, Ira Auerbach, has said that the firm is working on getting the necessary infrastructure and regulatory approval in place for its crypto custody service. The company has applied to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company charter, which would oversee its custody service.
Custody services are becoming increasingly important in the cryptocurrency industry, as institutional investors look for ways to safely store their digital assets. Nasdaq's entry into the market is likely to be seen as a positive sign for mainstream adoption of cryptocurrencies.
The NYDFS charter application is just one part of Nasdaq's broader efforts to establish itself in the crypto space. The company has also been exploring the potential for blockchain technology in areas such as settlement and clearing.
The move into cryptocurrency is a natural progression for Nasdaq, which has long been a leader in technological innovation in the financial industry. The company has a history of adapting to new trends and opportunities, and its entry into the crypto space is likely to be seen as a sign that the sector is maturing and becoming more mainstream.
Nasdaq's move into crypto custody services is just one of many recent developments in the rapidly evolving cryptocurrency industry. As more and more institutional investors look to enter the market, the need for safe and secure storage of digital assets is only set to grow. Nasdaq's entry into the market is likely to be welcomed by those who believe that cryptocurrencies are set to become a major part of the global financial landscape in the years ahead.