Nasdaq Readies Crypto Custodial Offering For Institutional Players

Summary:

  • Nasdaq.Inc has eyes on offering crypto custodial services to institutional investors.
  • The stock exchange boasts a new digital department led by former Gemini official Ira Auerbach.
  • This is Nasdaq’s first major push into the crypto market.
  • Exchange officials said the company is equipped to navigate regulatory requirements regarding expanding its crypto-focused services. 

The world’s second-largest stock exchange, Nasdaq, is poised for a big push into digital assets with the anticipated launch of crypto custodial services for institutional investors. At press time. Nasdaq boasts an equity market capitalization of over $17 trillion, eclipsed only by The New York Stock Exchange with over $24 trillion.

Bloomberg reported that the mammoth stock exchange recently opened the doors for a new department entirely focused on cryptocurrencies. This department will facilitate custodial services for crypto’s largest assets by market cap – Bitcoin (BTC) and Ether (ETH), per reports. 

Former Gemini official Ira Auerbach will lead the efforts of Nasdaq’s new digital asset department. Auerbach opined that increased institutional appetite for digital assets like BTC could bootstrap a fresh wave of crypto adoption, 

We believe this next wave of the revolution is going to be driven by mass institutional adoption. I can think of no better place to bring that trust and brand to the market than Nasdaq.

Indeed, digital assets have garnered the interest of institutional investors despite the recent turbulence in the cryptocurrency market. Ethereumworldnews recently reported that one of the world’s largest asset managers BlackRock partnered with Coinbase Prime to offer Bitcoin trading for select institutional clients.

Fidelity also announced plans to enable Bitcoin exposure for customers as well.

Nasdaq No Stranger To Cryptocurrencies

Nasdaq’s latest push into crypto is not the company’s first dance with the virtual currency industry. The stock exchange giant has reportedly powered market surveillance infrastructure for crypto exchanges as far back as 2018.

The company is familiar with regulatory regimes and equipped for compliance, said vice president Tal Cohen. Cohen further stressed that custodial services offer a key entry into the crypto market. 

Custody is foundational. Off the back of custody, we can start to develop other solutions, offer execution services, liquidity services, and think about how we support new markets.

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