In September, Nasdaq stated that it will enter the market for digital assets, joining other well-known financial institutions like Fidelity and BNY Mellon in providing custody services for cryptocurrency.
According to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, the global exchange group is moving quickly to put all the required technical infrastructure and regulatory permissions in place. He made this statement during an interview in Paris. To manage the new firm, Nasdaq has applied for a limited-purpose trust company charter with the New York Department of Financial Services.
The idea, which was first introduced in September, will represent the exchange operator’s significant entry into the cryptocurrency space. The first step in developing a wide range of services for the group’s digital assets sector, including execution for financial institutions, would be to safeguard Bitcoin and Ether, according to Auerbach.
While this is happening, some traditional financial institutions are expanding their cryptocurrency offerings. One recent example is the debut of a retail cryptocurrency trading platform by Fidelity.
Nasdaq stated that its goal for its digital assets division was to “play a major role in combating the increasing menace of financial crime” in cryptocurrency as well as “advance and help promote larger institutional engagement in digital assets.”
It could be fascinating to see how Nasdaq launches its crypto custody service and at what time. The U.S. Securities and Exchange Commission is committed to closely monitoring cryptocurrency asset custodians. The regulator has vigorously cracked down on the industry and has cautioned investors about a “significant” danger of loss.
The amount of money laundered through cryptocurrency was $8.6 billion in 2021, according to Nasdaq, and institutional usage of cryptocurrency may increase with the entry of well-known brands and tighter oversight.
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