Nasdaq Set to Launch Bitcoin Custody by June - Explosive News for Crypto Investors!
Nasdaq, the popular stock exchange, is planning to introduce cryptocurrency custody services by the end of June, according to the news outlet Bloomberg. The move is in response to the increasing demand for cryptocurrency asset management services from institutional investors and aligns with Nasdaq’s ambition to become a crypto trading platform.
- Bloomberg reports Nasdaq will launch Bitcoin custody services by June.
- The move is in response to growing demand from institutional investors for secure storage.
- For custody, Nasdaq will partner with an established crypto custodian.
- As Nasdaq enters the cryptocurrency market, Bitcoin custody is launched.
Nasdaq (NDAQ) aims to launch cryptocurrency custody services by the end of the second quarter, Bloomberg reported Friday.
As per the BTC_Archive’s recent Tweet;
In an interview with Bloomberg, Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said Nasdaq is
“moving forward to get all the necessary technology infrastructure and regulatory approvals.”
Ira Auerbach, senior vice president and head of digital assets at the exchange operator, said the company is working to obtain the necessary infrastructure and regulatory approvals. Nasdaq has applied to the New York Department of Financial Services (NYDFS) to form a limited-purpose trust company to oversee custody services.
Cryptocurrency custody refers to the storage of cryptocurrencies in highly secure offline storage systems, commonly referred to as cold wallets or vaults. It is an essential service offered to institutional investors such as hedge funds, family offices, and high-net-worth individuals who need to keep their digital assets safe.
Nasdaq’s entry into the crypto custody market is a significant development for the industry, as it is likely to encourage other traditional financial institutions to follow suit. The move also reflects the increasing institutional interest in cryptocurrencies, which has been growing steadily in recent years.
Institutional investors have been cautious about investing in cryptocurrencies due to the lack of adequate custody services. With the arrival of traditional financial institutions in the crypto custody space, institutional investors may feel more secure about holding digital assets, which could lead to increased investment in the crypto markets.
However, some industry experts caution that traditional financial institutions may not be the best custodians for cryptocurrencies, as they lack the necessary expertise and understanding of the unique risks associated with digital assets.
Some argue that specialized crypto custody providers such as Coinbase and BitGo, which have been offering custodial services for several years, are better equipped to handle the demands of institutional investors.
Despite these concerns, the entry of Nasdaq and other traditional financial institutions into the crypto custody space is expected to have a positive impact on the overall growth and acceptance of cryptocurrencies. As more institutional investors enter the market, the demand for cryptocurrencies is likely to increase, leading to further innovation and development in the industry.
Traditional financial firms like Nasdaq are trying to fill the void left by crypto-centric firms that have closed in recent months, with exchange FTX and banks Silvergate and Signature being the best known.
If crypto appetite continues to be strong under the Nasdaq, it could portend mainstream cryptocurrency adoption.