![](https://procoinnews.com/wp-content/uploads/2023/03/nasdaq-1200x630.jpg)
Nasdaq To Launch Crypto Custody Services In Q2 2023
• March 24, 2023 4:05 pm • CommentsCrypto custody services are becoming more and more popular as a result of the increased demand for crypto as an alternative banking system.
It was just revealed that Nasdaq will now be launching its own crypto custody services during the second quarter of the year and the service is expected to get a lot of attention from institutional investors.
In fact, the firm has shared that it is fast tracking all plans when it comes to the launch of this as they expect that there will be many obstacles to overcome from a technical and legal perspective.
The company states that the custody services will include digital assets like Bitcoin and Ethereum, but may later on include other popular crypto assets.
The safekeeping of crypto will likely become more and more important as time goes on as institutions continue to accumulate large amounts.
I'ts becoming clearer everyday. The attack on crypto is to allow the TradFi incumbents to come in and takeover.
In the midst of turmoil Fidelity, BlackRock, BNY Mellon, and now Nasdaq are launching crypto services.https://t.co/MNT1BtSrki
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) March 24, 2023
Watcher.guru reports:
Different companies from the financial space have stepped up to provide safekeeping facilities. The fall of crypto lenders, well-established companies, and exchanges opened the doors for other giants to step in and test the waters. Back in Q4 2022, BNY Melon launched its new digital asset custody platform.
Parallelly, Fidelity is another prominent name that offers crypto safekeeping services. Alongside, BNP Paribas, the French financial giant, also stepped into the custody game in 2022. The group signed a crypto custody partnership with Swiss digital asset safekeeping firm Metaco last year.
Nasdaq Inc. has prior experience in the crypto market space. The group has provided market surveillance technologies to various crypto exchanges. In fact, it revealed the launch of the Hashdex Nasdaq Crypto Index ETF, which is based on its own index, in Q1 2021.
Thus, with the arrival of traditional financial players into the crypto industry, overall adoption can be expected to rise.
The increased demand can also be attributed to the fact that traditional crypto banks are no longer safe and the fact that investors believe exchanges having custody of assets is no longer reliable.
After all, in just the past year alone, both crypto banks and crypto exchanges have failed where investors had either lost access to assets or was unable to access them.
With Nasdaq coming in to try to fill this gap, there is certainly some potential in this sector for growth and it is expected that other major companies may try to provide custody services as well.
Given that Nasdaq already has a reputation of being a large financial firm that deals with financial instruments, this could be a solution that many investors take advantage of if they don’t want to have custody of their assets themselves.
🚨BREAKING:@Nasdaq to launch a crypto custody service in Q2 of this year
Nasdaq's Sr. VP of Digital Assets–"custody is the first step in [this] digital asset push"
Hey regulators–what you want, and what the people want, are two very different things
— Bankless (@BanklessHQ) March 24, 2023
CoinDesk concludes:
The stock market exchange operator’s senior vice president and head of digital assets, Ira Auerbach, said the firm is working on getting the necessary infrastructure and regulatory approval in place. Nasdaq applied to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company charter which would oversee its custody service.
Nasdaq announced its intentions in September as it looked to respond to the demand from institutional crypto investors.
Traditional finance companies such as Nasdaq are looking to fill the gap left by more crypto-centric firms that have shut their doors in recent months, with exchange FTX and banks Silvergate and Signature the most prominent.
Should appetite for crypto among the likes of Nasdaq remain strong, it may prove a positive signal for mainstream cryptocurrency adoption.
NEWS: Nasdaq’s crypto custody services are reportedly coming by Q2’s end.https://t.co/zdhevdLa9B
— Blockworks (@Blockworks_) March 24, 2023
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.