Nasdaq to launch crypto custody service for BTC, ETH in 2023 to inaugurate digital assets arm

New York-based Nasdaq Stock Exchange Aims to Launch Crypto Custody Service by End of Q2, Bloomberg News report March 24th.

The exchange first announced plans to launch its digital asset business in September 2022 and has been steadily working on the launch of the division over the months since then.

steady progress

Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, told Bloomberg that the exchange has established a robust infrastructure and regulatory authority necessary to be able to serve cryptocurrency customers. said it was working to secure approval for

The Nasdaq is in the process of securing a limited-purpose trust company charter for the new sector from the New York Department of Financial Services, according to a report.

The exchange plans to launch its digital asset business with custody services for Bitcoin and Ethereum, the two cryptocurrencies with the largest market capitalization.

Custody is the first step in a plan to set up a wide range of services for digital assets, Auerbach told the newswire. He added that as the division continues to expand its business, it will eventually offer execution services to financial institutions.

TradFi continues to add crypto services

Joining the ranks of Fidelity Investments, BNY Mellon and BlackRock, Nasdaq is the latest traditional financial giant to move to crypto after snubbing digital assets for nearly a decade.

Asset management giant BlackRock, with over $10 trillion in assets under management, quietly expanded into cryptocurrencies this month, with CEO Larry Fink ranking digital assets highly among annual shareholders. letter.

Fink said:

“At BlackRock, we continue to explore areas that are most relevant to our clients, such as the digital asset ecosystem, particularly permissioned blockchains and tokenization of equities and bonds. There is clearly a high degree of risk and need or regulation.BlackRock is committed to operational excellence and intends to apply the same standards and controls to our digital assets as we do across our business.”

Fidelity began offering cryptocurrency trading and custody services to individual customers earlier this month, filling the void left by the failure of traditional banks like Silvergate, which served the cryptocurrency industry. rice field.

Meanwhile, BNY Mellon is quietly building out its digital assets division, launching a crypto custody service for institutional investors in late 2022.