Nasdaq, a trading platform, has announced that by the end of the second quarter, it will provide institutions with crypto custody services.
By the end of the second quarter, according to exchange operator Nasdaq, its crypto custody services should go live. Following bankruptcies and regulatory load from regulators, the move aims to increase the operator’s services offering in the cryptocurrency sector.
By the end of June, Nasdaq aims to provide custody services for digital assets, filling the void left by the collapse of companies like FTX in the cryptocurrency industry. According to Bloomberg on March 24, Nasdaq submitted an application for a limited-purpose trust company charter with the New York Department of Financial Services.
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, stated during the Blockchain Week Summit in Paris that the company has been moving forward with obtaining all essential needs, including regulatory approvals ready before the scheduled launch. Ira Auerbach is in charge of the new group dedicated to custodial services. Auerbach previously managed prime broker services at the cryptocurrency exchange Gemini.
In September, the exchange group announced that through a new division devoted to digital assets, it will initially provide institutional investors with custody services for Bitcoin and Ethereum.
Nasdaq BNY Mellon and Fidelity Are Providing Crypto Custody
Nasdaq will join other significant financial institutions providing crypto custody services, including BNY Mellon, Fidelity Digital Assets, Citadel Securities, and Virtu Financial. As this is going on, efforts are being made to tokenize traditional assets like bonds in an attempt to improve the efficiency of trading and processing these assets using blockchain technology.
In addition to providing crypto custody services, Nasdaq plans to develop additional solutions and provide execution and liquidity services. The exchange operator will investigate several avenues for assisting new markets.
Anthony Pompliano, a supporter of bitcoin, claimed that the debut of Nasdaq’s crypto custody service coincides with banks’ reluctance to promote the industry. The move is welcomed by the sector.
At the same time that banks are being threatened for supporting bitcoin and crypto companies, Nasdaq just announced bitcoin custody will be available by Q2 this year.
You can't stop an idea whose time has come.
— Pomp 🌪 (@APompliano) March 24, 2023
Bitcoin and Ethereum are currently trading at $28,046 and $1,777, respectively. In the midst of the banking crisis, bitcoin hopes to rise above $30,000.