A recent Bloomberg News report shows New York-based stock exchange Nasdaq is looking to expand its product offerings by launching a crypto custody service. This service is set to launch in the second quarter.
According to the report, the exchange has been working to establish a digital asset business since last September.
How Nasdaq is preparing for the Launch of Its New Business
Vice president and director of Nasdaq Digital Assets Ira Auerbach revealed in an interview with Bloomberg News that Nasdaq is in the process of developing a solid infrastructure for its crypto asset business along with securing various regulatory approvals to serve its customers in a compliant way.
Bloomberg News claims the exchange has already engaged NYDFS (New York Department of Financial Services) to secure a limited-purpose trust company charter for its new division.
In the interview, Auerbach said the custody services are part of Nasdaq’s wider plans to offer a range of services related to crypto assets. The vice president added that the exchange plans to provide execution services for various financial institutions in the near future.
More Traditional Financial Institutions Launch Crypto Services
After years of snubbing the industry, Nasdaq becomes the latest TradFi (Traditional Finance) company to enter crypto, joining the likes of BNY Mellon, BlackRock, and Fidelity Investments.
BNY Mellon rolled out its crypto custody service targetting institutional clients last year and has significantly built up its digital asset business since.
Meanwhile, giant asset manager BlackRock stepped into crypto earlier this month. At the time, the company’s CEO, Larry Fink, said BlackRock would continue to explore the crypto ecosystem, particularly areas relevant to its clients like tokenization of bonds and stocks and permissioned blockchains.
Fidelity Investments started offering custody services and crypto trading this month in an attempt to fill in the gap left by Silvergate. This bank catered to the crypto industry prior to its downfall a few weeks ago.