• Nasdaq Inc. is launching a crypto custody service by the end of Q2.
• The exchange operator has applied to the New York Department of Financial Services for a trust company charter.
• Nasdaq plans to provide services such as execution, liquidity services and support for new markets.
Nasdaq’s Crypto Custody Service
Nasdaq Inc., an exchange operator, expects its custody service for digital assets to launch by the end of Q2. Despite the multiple bankruptcies in the industries, Nasdaq is stepping into this space with a limited-purpose trust company charter approved by New York Department of Financial Services. This will enable safekeeping of Bitcoin and Ether as well as other services such as execution services, liquidity services and support for new markets.
The Purpose Behind it
Ira Auerbach, senior vice president and head of Nasdaq Digital Assets said that this step would help build various services for Nasdaq’s digital asset division. He believes that mass institutional adoption will be driven by this revolution in the market which can bring trust and brand to the market better than anyone else other than Nasdaq itself. Tal Cohen, another executive from Nasdaq added that custody was foundational and off the back of that they can develop multiple solutions like executions services and liquidity services etc..
Fidelity & BNY Mellon
Fidelity received approval to provide such services in 2021 while BNY Mellon announced its Digital Asset Custody platform in October 2020. Both these companies are large financial firms offering crypto custody services which makes them competitors in this space along with many others who have already stepped into this arena before them but with different offerings/services like Coinbase Custody or BitGo Trust Company etc..
Benefits & Risks
This move from Nasdaq will benefit both traditional investors who lack exposure to cryptocurrencies as well as those involved in cryptocurrency trading activities providing them access to greater security features like institutional grade tech infrastructure for storage and protection of their digital assets together with insurance coverage on them too if needed or required at all times be it day or night making it more appealing than ever before now when compared against other options available currently . Although there are certain risks associated with it too due to high volatility nature of cryptocurrency prices which might make some potential investors hesitant about investing their hard earned money here eventually or anytime soon after all .
Conclusion
So , overall we can conclude that although there are few risks associated with investing in cryptocurrencies due to their high volatility nature but still if done right then there lies great opportunity here too since now we have one more major player joining this field i-e „Nasdag“ which is bringing greater security features alongwith insurance coverage on digital assets plus accessiblity 24/7 making it more attractive option than ever before now when compared against other options currently available out there so far .