Nasdaq, the US stock exchange operator, has abandoned its plan to expand its digital asset offering by offering cryptocurrency custody services to institutional investors. The launch of the service was initially planned as the Wall Street giant’s first major crypto project.
Earlier in March, Nasdaq’s head of digital assets, Ira Auerbach, revealed that the market operator had applied for a limited-purpose trust company charter from the New York Financial Services Regulatory Authority. The exchange sought the license to float a digital asset custody service.
However, during today’s (Wednesday) earnings call, the exchange’s CEO, Adena Friedman, told investors that the company had decided to shelve the plan “given the shifting business and regulatory environment in the United States.”
According to CoinDesk, the Nasdaq CEO has indicated, however, that the company will continue to support the digital asset industry, including efforts to secure approval of exchange-traded funds (ETFs) from the U.S. Securities and Exchange Commission (SEC).
Nasdaq, one of the world’s largest stock exchanges, is a global financial services powerhouse. During the second quarter of 2023 ending in June, the company generated $1.43 billion in revenue.
In September last year, the exchange launched its Digital Asset Services division, with plans to diversify into cryptocurrency custody solutions. However, the new decision to halt the plan is a huge blow to institutional clients who have begun to show enthusiasm for the cryptocurrency industry in recent years.
Nasdaq’s decision comes as the Securities and Exchange Commission (SEC) wages a legal battle against Binance and Coinbase, the largest crypto exchange in the United States, alleging that both systems operate without permission and engage in the sale of “unregistered” crypto-asset securities.
The SEC approves the BTC instant electronic funds transfer for review
Meanwhile, despite the SEC crackdown on digital asset companies in the US, institutional investors are showing renewed interest in digital currency exchange funds (ETFs). Last month, Nasdaq filed for listing of BlackRock’s spot BTC ETF that is designed to track the price of BTC. The move sparked a wave of applications from other US-based asset management companies.
On Tuesday and Wednesday, six of these orders appeared in the Federal Register, indicating that they have been formally acknowledged by the SEC. Inclusion in the registry is the first step in the process that leads to the SEC’s decision on whether to accept or deny applications. The apps featured in the history are those offered by BlackRock, Bitwise, VanEck, WisdonTree, Fidelity, and Invesco.
finance poles She stated that applications must appear in the Federal Register before a final decision can be made on applications. With that stage now past, the SEC has between 45 and 90 days to decide on the six applications.
Earlier, the SEC sought public opinion on ETFs in a move that served as the first step to processing filings. However, before that time, Nasdaq and Cboe had to rework orders on behalf of the Wall Street firms, this time including details of the watch-sharing agreement they made with Coinbase. The agreement, which is part of recommendations made by the Securities and Exchange Commission, requires Coinbase to share any information with the agency about suspicious activity in the digital asset market.
In 2021, the SEC approved the first ever BTC futures ETF. However, it has denied applications for ETFs by companies like Fidelity and VanEck, saying they do not meet anti-fraud and investor protection standards.
Rakuten brings an AI assistant; Argo collects money. Read snippets of today’s news.
Nasdaq, the US stock exchange operator, has abandoned its plan to expand its digital asset offering by offering cryptocurrency custody services to institutional investors. The launch of the service was initially planned as the Wall Street giant’s first major crypto project.
Earlier in March, Nasdaq’s head of digital assets, Ira Auerbach, revealed that the market operator had applied for a limited-purpose trust company charter from the New York Financial Services Regulatory Authority. The exchange sought the license to float a digital asset custody service.
However, during today’s (Wednesday) earnings call, the exchange’s CEO, Adena Friedman, told investors that the company had decided to shelve the plan “given the shifting business and regulatory environment in the United States.”
According to CoinDesk, the Nasdaq CEO has indicated, however, that the company will continue to support the digital asset industry, including efforts to secure approval of exchange-traded funds (ETFs) from the U.S. Securities and Exchange Commission (SEC).
Nasdaq, one of the world’s largest stock exchanges, is a global financial services powerhouse. During the second quarter of 2023 ending in June, the company generated $1.43 billion in revenue.
In September last year, the exchange launched its Digital Asset Services division, with plans to diversify into cryptocurrency custody solutions. However, the new decision to halt the plan is a huge blow to institutional clients who have begun to show enthusiasm for the cryptocurrency industry in recent years.
Nasdaq’s decision comes as the Securities and Exchange Commission (SEC) is engaged in a legal battle against Binance and Coinbase, the largest crypto exchange in the United States, alleging that both platforms operate without permission and engage in the sale of “unregistered” crypto-asset securities.
The SEC approves the BTC instant electronic funds transfer for review
Meanwhile, despite the SEC crackdown on digital asset companies in the US, institutional investors are showing renewed interest in digital currency exchange funds (ETFs). Last month, Nasdaq filed for listing of BlackRock’s spot BTC ETF that is designed to track the price of BTC. The move sparked a wave of applications from other US-based asset management companies.
On Tuesday and Wednesday, six of these orders appeared in the Federal Register, indicating that they have been formally acknowledged by the SEC. Inclusion in the registry is the first step in the process that leads to the SEC’s decision on whether to accept or deny applications. The apps featured in the history are those offered by BlackRock, Bitwise, VanEck, WisdonTree, Fidelity, and Invesco.
finance poles She stated that applications must appear in the Federal Register before a final decision can be made on applications. With that stage now past, the SEC has between 45 and 90 days to decide on the six applications.
Earlier, the SEC sought public opinion on ETFs in a move that served as the first step to processing filings. However, before that time, Nasdaq and Cboe had to rework orders on behalf of the Wall Street firms, this time including details of the watch-sharing agreement they made with Coinbase. The agreement, which is part of recommendations made by the Securities and Exchange Commission, requires Coinbase to share any information with the agency about suspicious activity in the digital asset market.
In 2021, the SEC approved the first ever BTC futures ETF. However, it has denied applications for ETFs by companies like Fidelity and VanEck, saying they do not meet anti-fraud and investor protection standards.
Rakuten brings an AI assistant; Argo collects money. Read snippets of today’s news.