Nasdaq Plan to offer Institutional Crypto Custody
The world's second-largest stock exchange will reportedly offer crypto custody services to institutional investors.
According to a new report from Bloomberg, Nasdaq, the world-renowned stock exchange based in New York, will offer Bitcoin (BTC) and Ethereum (ETH) to high-level investors, with plans to open wide.
The report states that Nasdaq has hired Ira Auerbach, a former executive at crypto exchange Gemini, as head of Nasdaq's new Digital Assets unit.
As Auerbach said,
“We believe this next wave of revolution will be driven by mass institutional adoption. I can't think of a better place to bring that trust and brand to market than Nasdaq. "
The move will put Nasdaq in direct competition with major crypto companies, such as Coinbase, the leading US-based digital asset exchange.
Tai Cohen, Nasdaq's executive vice president and head of North American markets, said the company plans to expand the crypto-related services it offers.
“Registration is essential. From custody, we can start to develop other solutions, provide order matching, liquidity services, and think about how we support new markets.”
Cohen noted that Nasdaq has no immediate plans to start a cryptocurrency exchange, according to the report, although the idea has not been ruled out yet.
Cohen went on to say that Nasdaq will follow crypto regulations because that's what institutional investors want to see.
“We know how to operate according to the regulatory regimes and continue to innovate according to the rules of the road. The application of regulations when it is there is what we do. And organizations want us to operate within that framework.”
Nasdaq Custody is currently awaiting approval from the New York Department of Financial Services.
Sep 21, 2022