Nasdaq Is Set To Introduce Custody Services For Crypto In Q2 2023

Back in September of last year, Nasdaq, the second largest operator of the US stock market, announced the launch of its cryptocurrency custody service to meet the growing demand of institutional investors in the crypto market. The company has appointed Ira Auerbach, who has previously managed prime brokerage services at Gemini, as the head of its digital assets unit, as per the press release.

According to a report by Bloomberg, Nasdaq Digital Assets' Senior VP, Ira Auerbach, revealed that the company is working on obtaining regulatory approvals and building technical infrastructure to provide custody services for Bitcoin and Ethereum. The company has applied for a limited-purpose trust company charter with the New York Department of Financial Services.

The move is expected to be the first step towards offering a "broad suite of services" and eventually integrating executions for financial institutions. Several other financial companies, including BNY Mellon, Fidelity, and BNP Paribas, have already entered the custody game, as the fall of crypto lenders and exchanges has opened the doors for giants to test the waters.

Nasdaq has also previously provided market surveillance technologies to various crypto exchanges and launched the Hashdex Nasdaq Crypto Index ETF based on its index in Q1 2021. Nasdaq and other traditional finance companies are aiming to occupy the space vacated by several cryptocurrency-focused firms that have ceased operations in recent months.

If Nasdaq and similar firms continue to show a strong interest in cryptocurrencies, it could indicate a positive trend towards the adoption of digital assets by the mainstream.