Nasdaq to Launch Digital Assets Group With Crypto Custody Service

Nasdaq, the owner and operator of the second-largest stock exchange in the United States, is launching a group dedicated to digital assets.

Nasdaq executive vice president Tal Cohen said that former head of prime broker services at crypto exchange Gemini, Ira Auerbach will lead the new digital assets unit, which will initially offer custody services for Bitcoin and Ether to institutional investors. 

“We believe this next wave of the revolution is going to be driven by mass institutional adoption,” Auerbach said. “I can think of no better place to bring that trust and brand to the market than Nasdaq.”

Although the company has no immediate plans to launch a crypto exchange, Cohen said it would evaluate the opportunity based on the regulatory environment and competitive landscape.

Custody is key, says Nasdaq

Nasdaq has applied to become a custodian of digital assets with the New York Department of Financial Service, an essential step that puts it in competition with crypto firms like Coinbase, Anchorage Digital and BitGo.

“Custody is foundational,” Cohen said. “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.” 

Some financial firms, notably BNY Mellon and State Street, have started providing crypto custody for institutions. However, a recent guidance from the Securities and Exchange Commission has made holding tokens on behalf of clients more capital intensive for public companies, essentially precluding banks from even being able to feasibly offer custodial services.

Wall Street clamoring

The turn comes as the latest in a string of Wall Street legacy titans making deeper strides into cryptocurrencies due to persistent interest on behalf of their institutional investors, despite the overall market downturn over the course of the past year. 

For instance, BlackRock partnered with Coinbase Global to facilitate investing in Bitcoin for its clients, shortly thereafter offering its first investment product directly in the token.

Meanwhile, Charles Schwab, Fidelity Digital Assets, Citadel Securities and Virtu Financial have partnered to launch a new exchange, EDX Markets, which is set to start trading tokens this year.

The post Nasdaq to Launch Digital Assets Group With Crypto Custody Service appeared first on BeInCrypto.

Related Posts

Coinbase expands to Australia with focus on institutions in ‘months to come’

With an expanded Australian offering, Coinbase’s VP of international and business development said the exchange faced “tough questions” from regulators and policymakers about its services. United States-based…

Musk’s deal for Twitter looks set to go with original $44B price tag

Twitter appears ready to move forward with the deal for Elon Musk to buy Twitter, announcing in an Oct. 4 post they intend to close the transaction…

‘New frontier’ of crypto laundering involves cross-chain bridges and DEXs: Elliptic

Curve, Uniswap, 1inch, and the Ren bridge were the top platforms of choice for laundering illicit crypto, according to Elliptic. New research from blockchain analytics and crypto…

Bitwise launches Web3 ETF for institutional and retail investors

The ETF tracks the Bitwise Web3 Equities Index, with over 85% exposure to companies in Web3. Bitwise Asset Management announced on Oct. 3 a new exchange-traded fund…

Billionaire Hedge Fund Founder Ray Dalio Steps Down as Co-CIO of Bridgewater Associates

Billionaire hedge fund founder Ray Dalio has stepped down as chief executive of Bridgewater Associates, according to a transfer of voting rights on September 30. Bridgewater’s co-chief…

Oryen (ORY) Huge Opportunity To Become Bigger Than Elrond (EGLD), Quant (QNT), And OKB (OKB)

The cryptocurrency market is heating up and Oryen (ORY) is positioning itself as a significant player. The project has a lot of potential to become bigger than…

Generated by Feedzy