Nasdaq to Launch Digital Assets Custodial Services by the End of Q2

Nasdaq to Launch Digital Assets Custodial Services by the End of Q2

Nasdaq is planning to launch digital assets custodial services by the end of the second quarter of this year. The exchange is among the traditional financial firms poised to play an important role in the crypto sector, which has already seen the dramatic collapse of some major exchanges.

Nasdaq Seeks Regulatory Approval as Digital Assets Custodian

The US stock exchange Nasdaq is planning to launch custodial services for crypto assets by the end of June. The exchange will move into the sector after the fallout and closure of several failed companies. FTX is one of the largest crypto exchanges to have filed for bankruptcy.

Bloomberg reported on Friday, quoting Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, that the exchange is trying to obtain the necessary approvals from regulatory bodies to provide such services.

Auerbach revealed in an interview in the French capital that Nasdaq has already applied to the New York Department of Financial Services for a limited-purpose trust company to oversee the crypto sector. The initiative was first announced in September 2022. The second-largest American stock exchange by market capitalization of the traded shares is preparing to step into the crypto sector.

Digital Assets Division

The digital assets division of the exchange will start with safekeeping the leading cryptocurrencies, bitcoin (BTC) and ether (ETH), before expanding the array of services. The plan is to eventually provide custodial services to institutional investors.

The crypto winter has caused financial turmoil among banks exposed to digital assets, leading to the collapse of the crypto-friendly Silvergate Bank and Silicon Valley Bank in the United States.

Nasdaq will join two large institutions, BNY Mellon and Fidelity, to offer custodial services for cryptocurrencies, intermediary services, and the tokenization of traditional assets.

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