Nasdaq intends to launch a custody service for digital assets like bitcoin by the end of the second quarter this year. The exchange operator is one of several traditional financial firms seeking to serve as intermediaries in a crypto sector that has seen the collapse of several major firms.
Stock exchange NASDAQ seeks regulatory approval as crypto custodian
U.S. exchange operatorNasdaqplans to launch its own custody service for crypto assets by the end of June. The company is entering the industry in the aftermath of a series of failures, including the bankruptcy of FTX, one of the largest cryptocurrency exchanges.
Bloomberg reported Friday that the group is currently working on obtaining the necessary regulatory approvals to offer such services, citing Ira Auerbach, senior vice president and head of Nasdaq Digital Assets The company said.
Nasdaq has already applied to the New York Department of Financial Services for approval of a limited purpose trust company to oversee its new crypto business, the executive said in an interview in the French capital.
The initiative was first announced in September. It represents the first foray into the crypto economy for the company that operates the second-largest U.S. stock exchange by market value of shares traded.
The realization will begin by depositing the leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) and will expand the range of services offered by the group’s Digital Assets division. Eventually, the company will also offer execution for financial institutions.
The crypto winter of falling prices has also affected banks in contact with digital assets, leading to the collapse of crypto-friendly Silvergate Bank and Silicon Valley Bank in the United States
.
In the crypto market, NASDAQ, along with major financial firms such as BNY Mellon and Fidelity, will offer cryptocurrency custody, brokerage services, or tokenization of traditional assets to take advantage of the related technology.
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