• Nasdaq Inc. is planning to launch cryptocurrency custody services by the end of Q2 this year.
• Fidelity and Bank of New York Mellon already offer such options, while Nasdaq has applied for a limited-purpose trust company charter in New York.
• The new service could help institutions explore the crypto asset class more effectively.
Nasdaq to Offer Crypto Custody Services
Nasdaq Inc., one of the leading stock exchanges globally, aims to complete all necessary regulatory requirements and roll out its new cryptocurrency custody services by the end of Q2 this year. This move would make Nasdaq join other financial behemoths like Fidelity and Bank of New York Mellon who already offer similar options.
New York Department of Financial Services
In order to monitor this new business, Nasdaq has applied for a limited-purpose trust company charter from the New York Department of Financial Services. The successful completion of this process could lead to Nasdaq offering crypto custodial services by mid 2023, allowing institutions to explore the asset class more effectively.
Existing Crypto Custodians
Fidelity Investments and America’s oldest bank – BNY Mellon – are two major names in the financial sector who have already taken steps into becoming crypto custodians. They both provide secure storage for digital assets such as Bitcoin and Ether, which could be seen as a significant step forward from traditional finance into cryptocurrencies.
Nasdaq Digital Assets Division
Last September saw another push from Nasdaq towards embracing cryptocurrencies when it established a division called Nasdaq Digital Assets with an aim to help institutions interested in exploring the asset class more easily. Tal Cohen – Executive Vice President at Nasdaq – commented on how they plan on “providing necessary resources” with their new division while striving “to make digital assets part of mainstream investing”.
With its plans on launching crypto custodial services by mid 2023, along with existing players like Fidelity Investments and BNY Mellon, we are likely going to see an increase in institutional interest towards cryptocurrencies over the next few years as more reliable storage options become available for them thanks to companies like Nasdaq taking initiative in making that possible.