Nasdaq Inc remains focused on crypto custody services and is expected to launch by the end of the second quarter.
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, told Bloomberg that the company had applied for license with New York authorities. The business seeks to be licensed as a limited-purpose trust company charter, according to the newspaper. The New York Stock Exchange originally announced its intentions to enter the crypto custody market in September 2022. It has been working since then to get all of the governmental permits and technological infrastructure required to offer the services.
Auerbach stated that the exchange will begin by providing custody for the two most prominent digital currencies, Bitcoin and Ethereum. The CEOs also stated that the business is looking into additional crypto services.
The Right Time for Nasdaq
Considering recent market occurrences, numerous cryptocurrency players feel Nasdaq’s entry into the field demonstrates the industry’s growth.
Under intensive regulatory scrutiny, three prominent crypto-friendly banks — Silicon Valley Bank, Signature Bank, and Silvergate Bank — recently failed.
Famed crypto entrepreneur Anthony Pompliano said that Nasdaq just announced bitcoin custody will be available by Q2 this year. You can’t stop an idea whose time has come. According to crypto podcaster Tony Edward, NASDAQ’s action stated that the attack on crypto is to let the TradFi incumbents to come in and dominate.
Meanwhile, Nasdaq’s head of strategy for digital assets, Matt Savarese, stated that his company’s entry into the scene was inspired by recent industry concerns. According to him, confidence has begun to erode in the crypto world. This was said by Savarese during an interview on The Block’s The Scoop Podcast.
Conventional financial institutions such as BNY Mellon and Fidelity already provide cryptocurrency custody services. BNY Mellon began selling the services in 2022, while Fidelity began giving retail clients crypto trading and custody services in 2018.