Nasdaq Inc Stays Focused On Crypto Custody Services Expected To Launch By End Of Q2,
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, told Bloomberg that the firm has applied for a license with New York regulators. According to the report, the company wants to get a license as a limited purpose trust company charter.
The New York-based stock exchange first revealed its plans to venture into crypto custody in September 2022. Since then, it has been working on securing all regulatory approvals and technical infrastructure required to provide services.
Auerbach said that the exchange will start by providing custody for the flagship digital assets – bitcoin and ethereum. The executives said the company is also eyeing other crypto services.
Is the Time Right for the Nasdaq?
Given recent market events, many crypto stakeholders believe that Nasdaq’s entry into the space reflects the growth of the industry.
Most recently, major crypto-friendly banks – Silicon Valley Bank, Signature Bank and Silvergate Bank – collapsed following intense regulatory scrutiny.
Renowned crypto entrepreneur Anthony Pompliano Said“Nasdaq just announced that bitcoin custody will be available by Q2 of this year. You can’t stop thinking its time has come.”
crypto podcaster tony edward noted NASDAQ’s move suggests the “attack on cryptocurrencies is designed to allow Tradefy incumbents to come in and takeover.”
Meanwhile, Matt Savaris, Nasdaq’s head of strategy for digital assets, explained that recent issues in the industry prompted his company to enter the scene. According to him, trust in the space was beginning to break down. Savaris made the statement during an interview on The Block’s The Scoop podcast.
Traditional financial institutions such as BNY Mellon and Fidelity already provide crypto custodial services. BNY Mellon began offering the services in 2022, while Fidelity began offering crypto trading and custody services to retail customers.
Traditional Finance Companies Joining Crypto
Other traditional financial companies such as asset management firm BlackRock have also shown interest in the crypto scene.
CEO Larry Fink praised the digital asset in his recent shareholders’ letter, saying the firm would continue to explore the ecosystem. “While the industry is maturing, there is clearly a high level of risk in this market and a need or regulation,” he added.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.