Nasdaq will offer crypto custody services for financial institutions
Stock market operator Nasdaq launches a digital asset custody service for institutional investors. Initially, Nasdaq Digital Assets will offer bitcoin and ether custody to financial institutions, competing with the likes of Coinbase and Anchorage Digital.
We shall also remind that the world’s largest asset manager BlackRock has recently launched a new private spot Bitcoin (BTC) trust available to U.S. institutional clients.
The newly-formed unit still requires regulatory approval. It will be led by Ira Auerbach, who previously ran prime brokerage services at Gemini. The proposed custody solution will incorporate liquidity and execution services to “address industry challenges around connectivity, availability, and efficiency”.
The company claims that the crypto custody offering will “bring together the best attributes of hot and cold crypto wallets”. It should be highly accessible, secure and scalable.
Furthermore, Nasdaq is expanding its anti-financial crime technology capabilities for digital assets, rolling out a suite of crypto-specific detection capabilities. The company is open to working with crypto-native firms, although it doesn’t have any plans for acquisitions in the short term.