According to Bloomberg, the global securities market Nasdaq is preparing to launch its digital asset custody service by the end of the second quarter of this year. The exchange group has applied for a limited-purpose trust company charter with the New York Department of Financial Services, which will oversee the new business, Bloomberg reported. Ira Auerbach, senior vice president at Nasdaq and head of Nasdaq Digital Assets, reportedly revealed this in an interview in Paris, saying that the group is committed to ensuring that all necessary regulatory approvals and technical infrastructure are in place.
Originally announced in September, the project will be the exchange operator’s first major investment into the cryptocurrency industry. Securing Bitcoin will be the first step for Nasdaq's digital assets unit Bitcoin and Ethereum. Auerbach reportedly shared plans to eventually establish a broad suite of services for the group’s digital assets arm, including execution for financial institutions.
The entry of Nasdaq could be a game-changer for the industry as traditional financial institutions step up to fill the void left by the bankruptcy of the crypto industry. Its reputation and scale in the global exchange market may help boost institutional investors' confidence in the cryptocurrency market, paving the way for more traditional financial institutions to follow suit.
Nasdaq will join BNY Mellon and Fidelity as part of other large financial firms offering cryptocurrency custody services.
In 2022, Cointelegraph reported that BNY Mellon, the oldest bank in the United States, launched crypto services. The 238-year-old bank launched an enterprise digital assets unit in 2021 to develop crypto solutions and a platform linking digital and traditional asset custody.
