Nasdaq to offer crypto custody for institutional investors
Categories: Crypto News
Nasdaq to offercrypto custody for institutional investors
Nasdaqannounced that itwill launch a new group dedicated to digital assets in a bid to attractinstitutional clients. Tal Cohen, the company’s executive president and head ofNorth American markets, said that the new group will initially offer custodyservices for Bitcoin and Ethereum.
This is thefirst major push Nasdaq has made into the crypto industry. The second-largeststock exchange by trading volume has steered clear of the volatile cryptomarket, focusing on providing trading infrastructure and complying with strict U.S.regulations.
Theincreased appetite for cryptocurrencies institutional and accreditedinvestors have shown has pushed the company's heads to explore the new market.In an interview with Bloomberg, Cohen said that custody was "foundational"for the company as it represents a jumping board for other offerings.
Nasdaq iscurrently pending approval from the New York Department of Financial Servicesto become a registered custodian of digital assets. The company said it won’tbe launching a crypto exchange anytime soon. However, Cohen said that they willconsider it in the future if the regulatory environment and competitivelandscape allow it.
To lead thenew Nasdaq Digital Assets unit, the company hired Ira Auerbach, theformer prime broker services lead at Gemini.The company already has a solidinfrastructure set to launch a crypto exchange. Nasdaq outsources itsproprietary surveillance and trading software to crypto companies, includingproviding its matching engine technology to Bitstamp.