Nasdaq to Launch Crypto Custody Service to Meet Growing Market Demand – Here's What You Need to Know
Nasdaq aims to launch its much-anticipated crypto custody service by the end of the second quarter to meet the increasing institutional interest and demand for crypto services.
In an interview with Bloomberg on Friday, Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said Nasdaq is "pushing ahead to get all the necessary technical infrastructure and regulatory approvals in place."
Auerbach detailed that the global exchange group has applied to the New York Department of Financial Services for a limited-purpose trust company charter, which would oversee the new business.
The new crypto custody service, which will offer institutional investors a safe way to dip their toes in the digital asset industry, marks a major foray by the global securities marketplace into the crypto space.
As reported, the company said in September last year that it was looking to establish custody services and appointed Auerbach to oversee Nasdaq Digital Assets, a new division.
Notably, the unit will initially offer custody services for Bitcoin and Ether. Other services, including execution services and liquidity services, will be included over time.
“Custody is foundational. Off the back of custody, we can start to develop other solutions, offer execution services, liquidity services, and think about how we support new markets,” Cohen said at the time.
The move by Nasdaq comes at a time when traditional finance interest in crypto is on the rise.
In an October survey, BNY Mellon revealed that 91% of the bank's institutional investors are interested in investing in digital assets with 97% claiming that “tokenization will revolutionize asset management” and will be “good for the industry."
Furthermore, 70% of the bank's clients
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