Nasdaq Inc, the organization behind the market-leading Nasdaq stock exchange, is continuing its progress toward launching its digital asset custody platform in the second quarter of 2023. This can be a great move by the traditional finance (TradFi) industry to fill the void left by the bankruptcy of numerous crypto entities. This was reported on Friday.
About the Preparations
Ira Auerbach, Senior Vice President of Nasdaq, has stated that the organization is making progress with regard to obtaining the necessary technical infrastructure and regulatory authorizations. Additionally, the company has also submitted its application to the NYDFS or New York Department of Financial Services to obtain a limited-use trust company charter, which would be responsible for the new custody business.
This decision has been made, in light of the recent upheaval within the digital assets industry- including the bankruptcies of significant firms such as FTX, Celsius Network, and Genesis- and the departure of Silvergate Capital and Signature Bank from the crypto banking ecosystem.
Nasdaq’s Plan on Digital Assets
In September, Nasdaq announced its entrance into the digital assets arena with the launch of its crypto custody platform. This marks the company’s first venture into the sector, with Auerbach reportedly outlining that the unit will begin by providing custody services for Bitcoin and Ether. They also have plans to expand the scope of products and services in the future, including execution for financial institutions.
Nasdaq’s foray into the crypto space has not been limited to the launch of a custody platform. In 2021, the stock exchange operator partnered with an asset management firm Hashdex to develop a digital asset curriculum for financial advisors. This instructional material is intended to provide a comprehensive overview of the rapidly evolving digital asset ecosystem.
Furthermore, Nasdaq recently partnered with Brazil’s leading brokerage firm, XP, to launch a cryptocurrency exchange in the country. This exchange will initially offer users the opportunity to trade cryptocurrencies, with plans to expand its offering in the future to include more digital assets and investment products.