Nasdaq to offer crypto custody services
Nasdaq. Inc, the second biggest stock exchange, is reportedly looking to offer cryptocurrency custody services. The move is awaiting regulatory permission currently.
The exchange is forming a new company, Nasdaq Digital Assets; as a part of the expansion, this company will focus only on digital currencies.
Tal Cohen, executive VP and head of North American markets at Nasdaq, Inc., stated that the new business would start off with Bitcoin (BTC) and Ethereum (ETH) for institutional investors.
Nasdaq, Inc. has been active in the crypto market since 2018. The market monitoring capabilities of the company have been used by numerous cryptocurrency exchanges. The exchange released the February 2021 debut of the Hashdex Nasdaq Crypto Index ETF, based on its own exchange.
The business focused on providing advanced techniques to the crypto industry. It seemingly is an effort to profit from the growing market for such investments. Companies that offer custody services have also received money from banks like Barclays.
BNP Paribas, the French banking powerhouse, entered the custody battle as well. A crypto custody agreement was concluded with Swiss digital asset safekeeping business Metaco.
Custody services for cryptocurrencies is a competitive multi-billion-dollar industry. Nasdaq’s move is in tandem with its long-term strategy; it aims to become a crypto industry service provider instead of a trading platform.
However, the move establishes the growing significance of digital currency. Financial giants are starting to provide crypto-related services to cater to consumer demand. The entry of Nasdaq, Inc. into the crypto market is expected to raise the flow of institutional money into the sector.