Nasdaq Inc. plans to , one of the world’s leading financial institutions and the company behind the famous NASDAQ stock exchange, to start providing cryptocurrency custody services by the end of the second quarter of 2023.
according to Friday report By Bloomberg, this development was revealed by Ira Auerbach, SVP and Head of Digital Assets at Nasdaq during an interview at the Blockchain Week Summit in Paris.
Bloomberg also notes that NASDAQ is currently in the process of obtaining all the required technical infrastructure and approvals from the relevant regulatory agencies.
For this purpose, the US-based financial firm has approached the New York Department of Financial Services (NYDFS) for permission to set up a limited-purpose trust company to oversee this new wing of its business.
Nasdaq is one of the world’s traditional finance giants, with a total value of $25.95 billion. The company is responsible for operating three stock exchanges in the US and seven more in Europe.
The NASDAQ Stock Exchange is boosting interest in the crypto space
The launch of the cryptocurrency custody service will mark Nasdaq’s first major foray into the cryptocurrency world. However, the company’s interest in the trillion dollar market has been noticeable for some time.
Since 2018, the company’s CEO, Adena Friedman, advertiser Nasdaq’s willingness to provide cryptocurrency trading services and act as a cryptocurrency exchange after implementing appropriate regulations.
In 2022, the NASDAQ stock exchange has also attracted a lot of interest in the cryptocurrency space Partnership with the largest broker in Brazil XP To found XTAGE, a cryptocurrency exchange. However, XTAGE only provides support for bitcoin and other cryptocurrencies for now, with plans to add other forms of digital assets to its services later.
However, Nasdaq’s proposed cryptocurrency custody platform is expected to act in a similar manner.
During his interview on Friday, Senior Vice President Ira Auerbach stated that this new business venture will begin operations by providing safe custody for market giants Bitcoin and Ether before including other cryptocurrencies and digital assets.
Overall, the cryptocurrency custody service is a crucial step in the exchange operator’s goal of operating a digital asset division that offers a wide range of services, including “execution for financial institutions.”
Can Nasdaq Benefit From Recent Crypto Bankruptcies?
By launching a cryptocurrency custody service, Nasdaq becomes a traditional financial institution that could gain a strong fort in the crypto-verse, especially after the recent bankruptcy trend associated with the industry.
In 2022, the cryptocurrency market has been hit hard after the unexpected collapse of the giant cryptocurrency exchange, FTX. Heading into the new year, there have been more such occurrences, as US authorities shut down crypto-friendly banks Silvergate Capital and Signature Bank in the wake of their financial troubles.
Depending on how well it services it, the Nasdaq could take advantage of this gap in the market and provide a much-needed safe haven for investors and businesses alike.
In other news, the cryptocurrency market is still worth around $1.1 trillion, up 1.96% from its market cap in the last 24 hours.
Crypto total market cap valued at $1.12 trillion | Source: Tradingview.com
Featured image: Business Insider, chart from TradingView