Major US exchange Nasdaq is set to launch bitcoin custody service

Nasdaq, the US exchange operator, plans to start managing crypto for institutional investors at the end of the second quarter. This is evident from a reporting from Bloomberg. Nasdaq reportedly announced its intentions in September as it appeared to be responding to demand from institutional crypto investors.

Managing Bitcoin and Ethereum

Nasdaq will initially focus on the big boys within the crypto industry: bitcoin (BTC) and ethereum (ETH). It will not limit itself to just these two coins in the future, but it is clear that it does not want to take too many risks with altcoins for now.

Ira Auerbach, Nasdaq’s senior vice president and head of digital assets, indicated that the company is currently working to obtain the necessary infrastructure and regulatory approval. Nasdaq has with the New York Department of Financial Services (NYDFS) filed for a charter for a limited purpose trust company that will oversee the custody service.

With this move, Nasdaq is chasing other parties such as BNY Mellon and Fidelity. Last week you could read in the crypto news that Fidelity had opened its crypto platform called ‘Fidelity Crypto’ to private investors. This platform will offer commission-free trading for million US clients. Like Nasdaq, it is currently focusing on bitcoin and ethereum.

Confidence in crypto industry again

Companies from the traditional financial world are trying to fill the gap left by crypto companies that have had to close their doors in recent months. The failure of crypto exchange FTX and recently Silvergate and Signature Bank are the most prominent examples of this. If the interest in cryptocurrencies under, for example, Nasdaq remains high, this could be a positive signal for the mainstream adoption of digital assets.

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Since the collapse of FTX, the crypto industry has taken a major blow to confidence. The entry of big and reliable names like the Nasdaq can therefore greatly boost confidence and the overall reputation of the industry.

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