Nasdaq is set to launch its highly-anticipated crypto custody service by the end of Q2 2023. The aim is to cater to growing institutional interest and demand for crypto services. The global securities marketplace is pushing ahead to secure the necessary regulatory approvals and technical infrastructure. This results in institutional investors having a safe way to access the digital asset industry.
Nasdaq has applied for a limited-purpose trust company charter with the New York Department of Financial Services to oversee the new business. Initially, the unit will offer custody services for Bitcoin and Ether. Additionally, execution and liquidity services will be added over time. The move comes as traditional finance interest in crypto continues to grow. 91% of BNY Mellon’s institutional investors expressing interest in investing in digital assets. 70% of clients said they would increase their digital asset activity if trusted institutions provided custody and execution services.
We recently saw the collapse of three major US banks and regulatory scrutiny of major crypto exchanges. As a matter of fact, the world needs a trusted digital asset exchange for trading firms and other professional investors. Nasdaq’s move into the crypto space also provides an opportunity for the company. A secure platform for investors seeking an alternative banking system will be offered.
Yassine Elmandjra, an analyst at Ark Invest, has argued that Bitcoin’s recent price rally is a sign of its value as a safe-haven asset. He also noted that the increasing regulatory pressure has had no impact on the leading cryptocurrency’s price behavior. With Nasdaq’s entry into the crypto market, investors can access the digital asset industry with confidence, knowing that they are trading with a trusted institution.
In conclusion, Nasdaq’s trusted brand will offer investors the confidence they need to access the digital asset industry with ease.