According to reports, the Nasdaq US stock exchange plans to start institutional custody services for Bitcoin and other cryptos. According to sources, the move is still pending approval.
On Tuesday, the US exchange operator announced the establishment of a digital assets services company, beginning with the custody of crypto tokens for institutional investors. Nasdaq Digital Assets will provide custody services for cryptocurrencies such as Bitcoin and Ethereum, possibly competing with businesses such as Coinbase, Fidelity Digital Assets, and Winkelvoss twin-owned Gemini.
The New York-based firm, which handles billions of dollars in share transactions daily in companies like Apple and Tesla, also stated that it was exploring expanding its trading of digital assets.
According to a press release, the launch supports Nasdaq’s goal of advancing and facilitating more extensive institutional engagement in digital assets by delivering trusted and institutional-grade solutions focused on better custody, liquidity, and integrity.
Nasdaq President and CEO Adena Friedman stated in the news release that Nasdaq Digital Assets builds on the successful solutions offered in recent years to service the digital assets ecosystem. These include marketplace technology for digital asset exchanges, crypto-native anti-financial crime offers, and crypto-related index solutions for tradable goods. She adds that the company’s priority is to provide institutional-grade solutions that increase the liquidity, integrity, and transparency of the digital assets ecosystem.
To address industry concerns like connection, availability, and efficiency, Nasdaq Digital Assets will first build an enhanced custody solution that will include liquidity and execution services. Nasdaq’s custody solution will combine the finest features of hot and cold crypto wallets with an innovative technology offering that will deliver high accessibility and scalability without sacrificing security. The Nasdaq offering is subject to regulatory clearance in the relevant jurisdictions.
Earlier this month, NASDAQ’s marketplace services platform supported Digitra – a Brazilian Crypto Exchange, by offering its cloud-based solution. Nasdaq’s Marketplace Services Platform is not the company’s first move into cryptocurrency. Nasdaq Linq, a blockchain-based platform, was launched in 2015, with clients including Chain, Change Tip, PeerNova, Synack, Tango, and Vera.