Nasdaq Joins TradFi Giants, Launching Crypto Custody Services

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• Nasdaq is planning to launch a crypto custody service by the end of the second quarter.
• The exchange plans to launch its digital assets business with custody services for Bitcoin and Ethereum.
• Fidelity Investments, BNY Mellon, and BlackRock have been offering crypto services for some time now.

Nasdaq Joins Crypto Market

Nasdaq Stock Exchange has announced that it will be launching a cryptocurrency custody service by the end of the second quarter in 2021. The exchange plans to offer custody services for Bitcoin and Ethereum, two of the most valuable cryptocurrencies by market capitalization.

Obtaining Regulatory Approval

In order to offer these services, Nasdaq needs to obtain a limited-purpose trust company charter from New York’s Department of Financial Services. Ira Auerbach, Senior Vice President and Head of Digital Assets at Nasdaq has said that they are working on establishing solid infrastructure and securing necessary regulatory approvals.

Expanding Crypto Services

The launch of this new division will mark the first move towards offering more digital asset services in future such as execution services to financial institutions. Other TradFi giants such as Fidelity Investments, BNY Mellon and BlackRock have been offering crypto services since some time now.

BNY Mellon Launches Institutional Crypto Custody Services

New York-based banking institution BNY Mellon launched institutional crypto custody services in October 2022 and has been steadily expanding its digital assets division ever since then. Boston-based financial services corporation Fidelity is also offering crypto trading and custody services to retail clients now which had previously been served by banks like Silvergate which is no longer operational in this business segment.

BlackRock Enters Crypto Market

New York-based investment firm BlackRock which manages over $10 trillion in assets also entered the crypto market recently with CEO Larry Fink praising digital assets in his annual letter to investors.