• Nasdaq is aiming to launch a crypto custody service by the end of Q2, 2023.
• The company has applied for a limited-purpose trust company charter in New York.
• Fidelity and Bank of New York Mellon are already offering such services.

Nasdaq to Offer Crypto Custody Services

The stock exchange – Nasdaq Inc. – is planning to offer crypto custody services by the end of Q2, 2023. Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets, said that the exchange group will seek to complete all regulatory requirements and form the technical infrastructure for the platform in the following months.

Company Applies for Charter

In order to monitor its new business, Nasdaq has applied for a limited-purpose trust company charter with the New York Department of Financial Services. This would allow it to provide custodial services for digital assets such as bitcoin and ether.

Competition from Fidelity & BNY Mellon

Other financial companies who are already acting as crypto custodians include America’s oldest bank – BNY Mellon – and brokerage giant – Fidelity Investments. Both these companies have been offering similar services since last year.

Nasdaq Digital Assets Division

This is not Nasdaq’s first effort in exploring cryptocurrency markets either; it launched a division called Nasdaq Digital Assets back in September 2020 in order to help institutions interested in investing into this asset class. Tal Cohen – Executive Vice President of the stock exchange – commented at the time: “We believe this new suite of services will enable our clients to optimize risk management capabilities and securely participate more broadly across digital assets.”

Conclusion

Nasdaq’s upcoming cryptocurrency custody service could mark an important milestone both for itself and for institutional investors looking into digital assets. If all goes according to plan, we should expect all regulatory requirements to be met by mid-2023 so that crypto traders can use their services safely and securely without any worries about security or compliance issues.

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