• Nasdaq is planning to launch its digital assets business with custody services for Bitcoin and Ethereum by the end of the second quarter.
• It has been steadily working on obtaining a limited-purpose trust company charter from the New York Department of Financial Services.
• Other TradFi institutions such as Fidelity, BNY Mellon, and BlackRock have already been offering crypto services for some time now.
Nasdaq Crypto Business
Nasdaq Stock Exchange is planning to launch a crypto custody service by the end of the second quarter, according to Bloomberg’s report on 24 March. The exchange plans to launch its digital assets business with custody services for two major cryptocurrencies – Bitcoin and Ethereum. Nasdaq is currently in the process of obtaining a limited-purpose trust company charter from New York’s Department of Financial Services.
Crypto Services Offered by TradFi Institutions
Apart from Nasdaq, other traditional financial (TradFi) institutions are also entering into the crypto segment after years of speculation. For instance, BNY Mellon launched institutional crypto custody services in October 2022 and has been expanding its digital assets division since then. Similarly, Boston-based financial services corporation Fidelity is also providing crypto trading and custody services to retail customers and New York-based investment firm BlackRock entered crypto market this month with CEO Larry Fink praising digital assets in his annual letter to investors.
Ira Auerbach’s Statement
Ira Auerbach, Senior Vice President and Head of Digital Assets at Nasdaq informed Bloomberg that they have been working on establishing strong infrastructure and acquiring necessary regulatory approvals that will allow them to serve their crypto customers efficiently. He further added that custodial services are just first step in their plan to provide broader range of digital asset services which will eventually include execution services for financial institutions as well.
Previous Crypto Projects
In September last year, Nasdaq had first announced its plans to set up a digital asset business but it wasn’t until March this year when they finally revealed their intentions regarding launching a crypto custody service within second quarter itself. In addition to that, these traditional finance giants have also been involved in similar projects prior to this news as well such as Fidelity announcing ‚Fidelity Digital Assets‘ back in 2018 while Blackrock was reported filing patent application related to automated cryptocurrency trading system way back in 2019 itself.
The entry of these TradFi giants into the cryptocurrency sector signals an increased mainstream acceptance for blockchain technology as well as rising interest among institutional investors towards investing into cryptos over time slowly but surely transitioning the current economic system into more decentralized one based upon distributed ledger technologies such as blockchain & DAGs (Directed Acyclic Graphs).