Nasdaq, the global stock exchange operator, has announced its plans to offer custody services for digital assets by the end of June 2023.
Despite regulatory uncertainty and skepticism about cryptocurrencies in some countries, this move reflects the increasing institutional interest in the crypto industry.
Nasdaq has been working on meeting regulatory approvals and technical infrastructure necessary for the launch of its crypto custody services, according to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets.
The exchange group has applied to the New York State Department of Financial Services for a limited-purpose trust company charter to supervise the new business. Initially, the custody services will offer safekeeping for Bitcoin (BTC) and Ethereum (ETH), followed by extending the offering and eventually including execution for financial institutions.
Nasdaq’s move comes in response to the bankruptcy of FTX, once one of the largest crypto exchanges in the world, and the similar digital asset custody endeavors of other large financial firms, such as BNY Mellon and Fidelity.
