Nasdaq to offer large customers crypto custody services

The initiative is pending regulatory approval

20.09.2022 - 14:55

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2 min

What’s new? Tal Cohen, executive vice president at the U.S. stock exchange Nasdaq and head of North American markets, announced the launch of a cryptocurrency unit. Initially, the department will offer BTC and ETH custody services for institutional investors. The Nasdaq Digital Assets unit will be headed by Ira Auerbach, who previously ran primary brokerage at cryptocurrency exchange Gemini, Bloomberg writes.

Bloomberg's material

What else does the publication report? Nasdaq is pending approval for cryptocurrency custodial services from the New York State Department of Financial Services (NYDFS). The move will help the exchange compete with cryptocurrency companies such as Coinbase, Anchorage Digital and BitGo.

According to Cohen, custodial storage is fundamental, and from it, Nasdaq will be able to start developing other solutions as well as offer liquidity services. While Nasdaq has no immediate plans to launch a cryptocurrency exchange, it will assess opportunities based on the regulatory and competitive environment, Cohen said.

Nasdaq is focused on diversifying its revenue streams outside the exchange business, where public companies' stocks are traded. It invests in software and other projects. The company also provides cryptocurrency market participants with its own software, including monitoring and trading tools. It already provides cryptocurrency matching engine technology to exchanges such as Bitstamp.

Earlier, investment firm BlackRock announced a partnership with cryptocurrency exchange Coinbase. As part of the partnership, BlackRock's institutional investors who use its Aladdin platform will have direct access to digital assets.

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