Nasdaq to Launch Crypto Custody Service

• The Nasdaq Stock Exchange is planning to launch a crypto custody service by the end of the second quarter.
• The exchange intends to kick off its digital assets business with custody services for Bitcoin and Ethereum.
• Traditional financial giants such as Fidelity Investments, BNY Mellon and BlackRock have also pivoted towards crypto.

Background

The New York-based Nasdaq Stock Exchange first announced its plans to set up a digital asset business in September 2022. Since then, it has been steadily working on setting up the division and securing the necessary regulatory approvals that will allow it to serve crypto customers. Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, stated that they are in the process of securing a limited-purpose trust company charter from the New York Department of Financial Services for their new division.

Custody Services

Nasdaq’s digital asset services will begin with custody services for Bitcoin and Ethereum, which are the two largest cryptocurrencies by market cap. Auerbach mentioned that custody is just the first step in its plans to offer execution services for financial institutions as it continues to expand its business.

Traditional Financial Giants Pivot Towards Crypto

Nasdaq is not alone in entering into this space — Fidelity Investments, BNY Mellon and BlackRock have all started offering crypto services as well. Asset management giant BlackRock recently expanded into crypto this month, with CEO Larry Fink speaking highly of digital assets in his annual shareholder letter.

Conclusion

It appears that many traditional financial giants are beginning to see potential benefits from investing in or offering cryptocurrency products or services. As more organizations join this space, we can expect further development and adoption of cryptocurrencies over time.