Nasdaq to enter the cryptocurrency custody market for institutional clients

  • The exchange will compete with the likes of Coinbase and Anchorage
  • Ex-Gemini CEO Will Head NASDAQ’s New Digital Assets

Nasdaq, the second largest exchange in the United States, is looking to tap institutional investors by offering cryptocurrency custody services for bitcoin and ether.

The former global head of Gemini Prime will join the Nasdaq team to head the new division – Nasdaq Digital Assets.

If approved by the New York Department of Financial Services (NYDFS), Nasdaq will become a custodian of digital assets, putting the exchange in direct competition with central crypto giants including Coinbase, Anchorage Digital and BitGo.

Nasdaq is the latest Wall Street giant to take a greater interest in the field of blockchain technology. The financial services giant has been making slow strides in the cryptocurrency market.

Adina Friedman, president of Nasdaq, said in a statement that it currently outsources its monitoring and trading software to blockchain companies, and has invested in crypto software and data.

The technology that underpins the digital asset ecosystem has the potential to transform markets in the long term. To realize this opportunity, our focus will be on providing enterprise-grade solutions that provide greater liquidity, integrity, and transparency to support development,” said Friedman.

Despite these moves, Friedman previously said that the exchange remains conservative in the absence of regulatory clarity.

The institutional crypto custody service provider space has received a lot of attention from the global market in recent years.

Barclays – a British multinational bank that has invested “millions of dollars” in cryptocurrency custodian Cooper. Genesis Trading, a digital trading brokerage, was able to clear regulatory hurdles and expand its operations to the UK, Japan, Canada, Turkey, Israel and Latin America in December last year.

Retail investors, once they become more familiar with blockchain technology, are more likely to use self-custodial options, according to Charles Hamill, vice president of product at crypto hardware wallet maker Ledger.

In an interview with Blockworks in May, Hummel said that digital assets held are “the future,” a sentiment echoed by Coinbase CEO Brian Armstrong.

In a blog post published in June, Armstrong wrote, “The products used by most people who are advancing in crypto today will be used by regular customers within a year, and by organizations a few years after that…we need to start integrating them today.” “

Currently, organizational and technical obstacles to self-booking at the institutional level make solutions such as those envisioned by Nasdaq more attractive.

“Demand among institutional investors to engage in digital assets has increased in recent years, and Nasdaq is well positioned to accelerate broader adoption and drive sustainable growth,” said Tal Cohen, Nasdaq Executive Vice President and Head of North American Markets.


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  • Bessie Leo

    blockworks

    Reporter

    Bessie is a New York-based crypto reporter who previously worked as a technical journalist for The Org. She completed her MA in Journalism at New York University after working as a management consultant for over two years. Bessie is originally from Melbourne, Australia. You can contact Bessie at [email protected]

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