Nasdaq to Offer Revolutionary Custody Services for Bitcoin and Ethereum
- Bridget Hubbard
- March 25, 2023
- Bitcoin, Crypto, Ethereum, news
- Bitcoin, cryptocurrency, ethereum, Nasdaq
- 0 Comments
The global stock exchange operator Nasdaq is set to launch its crypto custody services by the end of June 2023. The move signifies an increasing interest in the cryptocurrency industry by institutional investors despite widespread regulatory uncertainty and suspicion of cryptocurrencies in some countries. Nasdaq has applied to the New York State Department of Financial Services for a limited-purpose trust company charter to oversee its crypto custody services.
🚨THE TRADFI CRYPTO TAKEOVER REVEALED!! NASDAQ CRYPTO CUSTODY
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) March 24, 2023
Nasdaq’s Crypto Custody Services
Initially, Nasdaq’s crypto custody services will offer custody services for Bitcoin (BTC) and Ethereum (ETH), with plans to expand its offerings to include execution for financial institutions. Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, explained that the move is in response to increasing client demand for access to digital assets.
Nasdaq’s move into crypto custody services follows similar initiatives by other major financial institutions, including the oldest bank in the U.S., BNY Mellon, and investment giant Fidelity. BNY Mellon became the first mainstream lender to roll out crypto services in October 2022, offering crypto access to select clients interested in Bitcoin and Ethereum alongside its traditional products on the same platform. Shortly after, Fidelity announced plans to offer its institutional users access to Ethereum through its digital asset subsidiary.
Growing institutional interest in Digital Assets
Nasdaq’s entry into the crypto space is a significant development for the industry, as it signals a growing institutional interest in digital assets. Institutional investors increasingly view cryptocurrencies as an alternative asset class that can offer a hedge against inflation and diversification benefits for their portfolios. The adoption of digital assets continues to gain momentum, and more financial institutions are expected to enter the crypto space to meet the growing demand for secure custody services.
Maturing Crypto Industry
— 🟩 Dr Martin Hiesboeck (@MHiesboeck) March 24, 2023
As more financial institutions enter the crypto space, the industry is expected to grow and mature. Nasdaq’s move into crypto custody services is a step towards meeting the needs of institutional clients and filling the void left by the bankruptcy of FTX. With the increasing demand from institutional investors, cryptocurrencies have been rapidly gaining mainstream acceptance, and many countries and companies are looking to establish a regulatory framework for digital assets.