By the end of the second quarter, Nasdaq Inc. is taking another major step towards the sector by launching custody services.
Ira Auerbach, head of Nasdaq Digital Assets, recently gave in an interview stated that the global exchange group aims to obtain all the necessary permits and establish the platform’s technical infrastructure in the coming months.
If all goes according to plan, Nasdaq could begin providing custody services for cryptocurrencies in mid-2023. An application has already been made to the New York Department of Financial Services for a charter for a limited-purpose trust company to oversee the new business.
Crypto-custodial services are provided by several well-known names in the traditional financial sphere, including one of the oldest banks in the United States, BNY Mellon, and the fund manager Fidelity Investments.
Digital assets such as bitcoin and ether storage are significant advances for both Nasdaq and the sector, especially in terms of acceptance by traditional financial markets.
Last September, Nasdaq threw itself into the sector more vehemently and created the Nasdaq Digital Assets department to help its institutional clients who want to discover the asset class.
Tal Cohen, the executive vice president of the exchange, commented on the move at the time that client institutions are already showing a growing interest in cryptocurrencies, and highlighted that his company “is well positioned to accelerate wider adoption and generate sustainable growth.”
“The technology that forms the basis of the ecosystem of digital devices can transform markets in the long term. To capitalize on this opportunity, we will focus on providing institutional-level solutions that provide greater liquidity, integrity and transparency to support this evolution” commented President Adena Friedman.