• Nasdaq Stock Exchange plans to launch a crypto custody service in the second quarter of 2023.
• The exchange first announced its plans to set up a digital asset business in September 2022.
• Traditional financial giants such as Fidelity Investments, BNY Mellon and BlackRock have pivoted toward crypto services.
Nasdaq Launches Crypto Custody Service
Nasdaq Stock Exchange is looking to launch a crypto custody service by the end of the second quarter of 2023, according to Bloomberg News. The exchange had first announced its plans to set up a digital asset business in September 2022 and now it is steadily working on setting up the division over the months since.
Progress So Far
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, revealed that the exchange has been working on establishing solid infrastructure and securing necessary regulatory approvals that will allow it to serve crypto customers. He added that they plan to kick off with custody services for Bitcoin and Ethereum, two largest cryptocurrencies by market cap. Eventually they also plan to offer execution services for financial institutions as they continue expanding their business.
Traditional Financial Giants Pivot Towards Crypto
Nasdaq is the latest traditional financial giant to pivot towards crypto after snubbing digital assets for better part of a decade — joining the ranks of Fidelity Investments, BNY Mellon and BlackRock. Asset management giant BlackRock recently quietly expanded into crypto this month with CEO Larry Fink speaking highly of digital assets in his annual shareholder letter.
In his letter, Larry Fink mentioned about “elevated risks” associated with cryptocurrency investments and need for regulations in this market which indicates how seriously these traditional companies are taking their foray into cryptocurrency space.
From providing custody services to offering execution services for financial institutions, all these moves from traditional finance sector are indicative of growing acceptance among mainstream investors towards cryptocurrency investments which is likely going to take them one step closer towards mass adoption in near future.