Nasdaq looking to launch crypto custody by the end of Q2

ambcrypto.com:

New York’s Nasdaq Stock Exchange is planning to launch a crypto custody service by the end of the second quarter, Bloomberg reported on 24 March.

The exchange plans to launch its digital assets business with custody services for the two most valuable cryptocurrencies by market capitalization, Bitcoin and Ethereum.

Nasdaq is currently working to obtain from the New York Department of Financial Services a limited-purpose trust company charter for its new crypto division, according to the report.

It was in September last year that the exchange first announced its plans to set up a digital asset business, and it has been steadily working on it ever since.

Ira Auerbach, Senior Vice President and Head of Digital Assets at Nasdaq, told Bloomberg that the exchange has been working on establishing solid infrastructure and securing the necessary regulatory approvals that will allow it to serve crypto customers.

Auerbach stated that custody is the first move in its plan to establish a wide range of digital asset services. He also stated that as the crypto division grows, it will eventually offer execution services to financial institutions.

Nasdaq is not the first traditional financial (TradFi) institution to enter the crypto segment after years of speculation. Fidelity Investments, BNY Mellon, and BlackRock have been offering crypto services for quite some time now.

New York-based banking institution BNY Mellon launched institutional crypto custody services in October 2022 and has been steadily expanding its digital assets division.

Boston-based financial services corporation Fidelity is also offering crypto trading and custody services to retail clients now, filling the void left by the failure of traditional banks such as Silvergate,