US exchange group Nasdaq is entering the digital asset custody space following the recent bankruptcies of crypto lenders, well-established companies, and exchanges. Nasdaq Digital Assets plans to offer custody services for Bitcoin and Ethereum in the second quarter of this year, according to Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets.
Nasdaq Plans to Expand Suite of Services
Providing custody services is the “first step” for Nasdaq Digital Assets to build a “broad suite of services,” said Auerbach in an interview. The group will integrate executions for financial institutions further down the line. Nasdaq has experience in the crypto market space, having provided market surveillance technologies to various crypto exchanges. It launched the Hashdex Nasdaq Crypto Index ETF, based on its own index, in Q1 2021.
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Nasdaq Pushes Ahead with Infrastructure and Approvals
Auerbach added that Nasdaq Digital Assets is “pushing ahead” to obtain the necessary technical infrastructure and regulatory approvals. The group has also applied to the New York Department of Financial Services for a limited-purpose trust company charter.
BNY Mellon launched its digital asset custody platform in Q4 2022. Fidelity and BNP Paribas also offer crypto safekeeping services. BNP Paribas signed a crypto custody partnership with Swiss digital asset safekeeping firm Metaco last year.
The arrival of traditional financial players in the crypto industry is expected to boost overall adoption. The fall of crypto lenders, well-established companies, and exchanges opened the doors for other giants to step in and test the waters. Nasdaq’s foray into the digital asset custody space is expected to provide safekeeping facilities for a broad range of financial assets.
