Nasdaq’s Upcoming Crypto Custody Platform to Launch This Year – Report
The news that Nasdaq plans to launch its crypto custody platform by the end of June 2023 is a welcome development for many in the crypto industry. The platform will provide institutional investors with a secure and reliable way of safeguarding their digital assets and peace of mind when investing in cryptocurrencies.
As one of the world’s largest and most respected stock market exchanges, Nasdaq’s entry into the crypto space is a sign of traditional financial institutions’ growing acceptance of digital assets.
Addressing Crypto Industry’s Need for Custodial Services
According to reports, Nasdaq Inc., the prominent stock market exchange, plans to launch a digital asset custody platform in Q2 2023. With this move, the company addresses the lack of custodial services in the crypto industry due to multiple bankruptcies.
The group oversees the second-largest stock market exchange and wants to join other TradFi firms, such as BNY and Fidelity, in offering crypto custody services. A Nasdaq top executive Ira Auerbach mentioned that they are working hard to ensure they have all the necessary tools and approval from the appropriate authorities.
The move comes after a chaotic time in the crypto market, where a few well-known organizations filed for bankruptcy following liquidity issues. The most notable being FTX, Celsius Network, and Genesis.
Also, last month’s bank crisis saw the shutdown of three crypto-friendly banks – Silvergate, Silicon Valley, and Signature Banks. These bankruptcies have unsettled the fragile crypto industry, causing a general decline in the prices of crypto assets.
Nasdaq Custody Platform Isn’t A First Foray Into Crypto
Last September, Nasdaq launched its crypto custody platform, the firm’s first significant crypto-related business. Per Auerbach, the new subsidiary will provide custody services for Bitcoin and Ether before broadening its offer to include other crypto-related products and services.
Nevertheless, the custody platform is not Nasdaq’s first crypto-related business. Earlier this year, the stock exchange partnered with the asset management business Hashdex. The partnership aims to introduce a digital assets course for financial advisors and offer education on advancing the digital asset environment.
The company recently partnered with XP, Brazil’s largest broker, to open a cryptocurrency trading platform in the South American nation. According to Nasdaq, its new crypto custody platform will provide institutional investors the same level of security and trust they expect from the platform’s stock exchange.
Suppose the popular exchange delivers on its promises with its crypto custody services. In that case, it will improve confidence in the digital asset space and further establish Nasdaq’s position as a leader in financial innovation.
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