NASDAQ Set To Launch Digital Asset Arm And Crypto Custody Service

Nasdaq has announced its entry into the virtual asset market, despite the current banking crisis that has caused traditional financial institutions to distance themselves from crypto assets. The New York Stock Exchange has reportedly revealed intentions to introduce its cryptocurrency custody service by the middle of this year.

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The most recent advancement follows the Stock Exchange's announcement of the beginning of its digital asset business in September of last year and its ongoing, covert efforts to introduce its cryptocurrency section. Ira Auerbach, a senior executive at Nasdaq, said in a statement that the company has been gradually striving to build a strong infrastructure and obtain regulatory clearances that would allow it to support its crypto clients.

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Furthermore, the brokerage is about to get a limited-purpose trust company license from the New York Department of Financial Services (NYDFS) for its intended crypto subsidiary. Additionally, Nasdaq stated that it intends to introduce custody services for two of the largest digital assets by market value, Bitcoin and Ethereum.

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According to Auerbach, crypto custody is the first step toward Nasdaq's future entry into the digital asset market. It wants to provide a wide range of services throughout time.

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The CEO stated that Nasdaq's crypto division will provide specialist services to financial institutions. Furthermore, Auerbach stated that Nasdaq's crypto section seeks to ensure the availability of BTC and ETH for institutional investors.

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The drop in crypto asset values and the resulting bankruptcy, particularly that of FTX in November 2022, has prepared the path for traditional financial giants like Nasdaq to enter the crypto industry.

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TradFi Accepts Crypto Services

Last year's lengthy crypto winter and many crypto trading platform failures have allowed stock firms such as Nasdaq to enter the crypto field after ignoring it for over a decade. However, Nasdaq has recently joined the ranks of conventional finance heavyweights like BlackRock, Fidelity Investments, and BNY Mellon in providing digital asset services.

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BlackRock, the asset management juggernaut, purportedly manages more than $10 trillion in assets and discreetly entered the cryptocurrency market in early March. In his letter to the company's board outlining the firm's latest decision, BlackRock CEO Larry Fink allegedly praised bitcoin.

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Fink said in the letter that BlackRock takes pride in being creative and that its investigation of digital assets is done with its clients in mind. The CEO admitted that, while the market is still growing, there are higher hazards therein, necessitating industry controls.

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To fill the void left by the collapse of the crypto-friendly banks, Fidelity Investments joined BlackRock in giving customers custody and cryptocurrency services at the beginning of this month. But, around the end of 2022, BNY Mellon began providing crypto services to educational clients, and since that time, it has been progressively expanding its digital asset arm.

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