Business and Financecrypto custodyCustody ServicesDigital AssetsNasdaq 
- Nasdaq expects to launch its crypto custody services by the end of the second quarter.
- The exchange operator is setting up the technical infrastructure and getting regulatory approvals for the same.
- Nasdaq is seeking a trust company charter from New York’s financial regulator for its custody business.
Nasdaq Inc, the world’s second-largest stock exchange operator, is aiming to make its crypto debut by unveiling its digital asset custody business by the end of the second quarter. With a market capitalization of over $16 trillion, the exchange operator’s foray into the crypto space will mark a significant milestone in traditional finance’s participation in this industry.
Nasdaq is seeking a trust company charter from the NYDFS
According to a report by Bloomberg, Nasdaq is seeking a limited-purpose trust company charter from the New York Department of Financial Services (NYDFS) for its digital asset custody business, which was initially announced in September last year. The global exchange group is among the many traditional finance firms that are looking to fill the void left by multiple crypto middlemen that went bankrupt last year.
Ira Auerbach, the senior vice president and head of Nasdaq Digital Assets, told Bloomberg that the exchange operator is currently working on the technical infrastructure that’s required for its new business, in addition to acquiring the necessary regulatory approvals. Auerbach further revealed that one of the first orders of business will be to offer Bitcoin and Ether custody services and eventually offer execution for financial institutions.
The technology that underpins the digital asset ecosystem has the potential to transform markets over the long term. To deliver on that opportunity, our focus will be to provide institutional-grade solutions that bring greater liquidity, integrity, and transparency to support the evolution”
Adena Friedman, CEO of Nasdaq
With the launch of its digital asset custody business, Nasdaq will join the likes of Bank of New York Mellon and Fidelity, which offer crypto custody services to their clients.
Source : Ethereum World News
