Nasdaq Aiming to Debut Crypto Custody Service by Q2 End

Nasdaq Inc. is preparing to launch its digital asset custody services by the end of the second quarter, joining other traditional financial firms aiming to act as crypto middlemen in the wake of recent industry bankruptcies. The company is working to establish the necessary technical infrastructure and regulatory approvals to support the new business. According to Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets, the firm has applied for a limited-purpose trust company charter from the New York Department of Financial Services to oversee the service. Nasdaq’s move into crypto custody is in response to institutional investors’ increasing demand for crypto-related services.

In addition to Nasdaq, other traditional finance firms, such as banks Silvergate and Signature and exchange FTX, are looking to fill the gap left by crypto-centric companies that have recently closed their doors. Nasdaq’s strong interest in the crypto space may signal a positive trend towards wider cryptocurrency adoption by mainstream investors.