Nasdaq, the global securities market, has decided to halt the launch of its cryptocurrency custody service, which was initially planned for the end of the second quarter of 2023. Nasdaq CEO Adena Friedman made the announcement during the company's second- quarter earnings call, citing regulatory risks in the United States as the reason for the decision. She stated that considering the changes in the US business and regulatory environment, they have decided to stop launching the US digital asset custody business and related efforts to ob tain relevant licenses.
Despite putting the product launch on hold, Friedman emphasized that Nasdaq remains committed to the development of the digital asset business. The company will continue building and delivering technology capabilities that position Nasdaq as a leading provider of digital asset software so solutions globally. This includes advancing their custody solutions as a technology platform to serve the broader global digital asset market. However, Nasdaq will closely monitor the market for potential regulatory events in the coming months.
Nasdaq first announced its cryptocurrency custody project in September 2022, with plans to launch an official unit that would enable customers to safely store bitcoin and ether. The company had been making progress on the plan until March 2023, targeting a launch at the end of July . This move comes at a time when major cryptocurrency firms are also working towards listing spot bitcoin exchange-traded funds (ETFs) on the Nasdaq exchange. The SEC is currently evaluating two spot bitcoin ETF proposals under Nasdaq Rule 571. 1.
