Nasdaq is Launching Crypto Custody Services Next Quarter
Nasdaq is set to launch Crypto Custody Service in Q2 of 2023.
First thing you need to know: What are Crypto Custody Services?
Crypto custody services refer to the secure storage and management of digital assets such as cryptocurrencies. These services are provided by companies that specialize in safeguarding cryptocurrency holdings on behalf of individuals and institutions.
Since cryptocurrencies are digital assets, they require a different kind of storage than traditional assets like cash, gold or stocks. Crypto custody services offer secure storage solutions for cryptocurrencies through various means such as cold storage, multi-signature wallets, and hot wallets.
Cold storage involves storing cryptocurrencies offline in hardware devices that are not connected to the internet, making them more secure against hacking attempts. Multi-signature wallets require multiple approvals before a transaction can take place, which adds an additional layer of security. Hot wallets are online wallets that are connected to the internet, making them more vulnerable to hacking attempts but they can provide quicker access to funds when needed.
In addition to storage, crypto custody services may also offer services such as insurance, asset management, and auditing to ensure the safety and integrity of their clients' digital assets. These services are particularly important for institutional investors who hold large amounts of cryptocurrencies and require a high level of security and regulatory compliance.
Nasdaq Taking Action:
Despite widespread regulatory uncertainty and suspicion of cryptocurrencies in some countries, the global stock exchange operator Nasdaq plans to begin offering custody services for digital assets by the end of June 2023, demonstrating an increased institutional interest in the crypto industry.
Indeed, the Nasdaq has been working hard on meeting all the regulatory approvals and technical infrastructure necessary for the launch of its crypto custody services, according to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, Bloomberg reported on March 24.
To this end, the global exchange group has applied to the New York State Department of Financial Services (NYSDFS) for a limited-purpose trust company charter to supervise the new business as part of the project originally announced back in September 2022 in a bid to attract institutional clients.
According to the report, this is Nasdaq’s first step into the crypto world, and it will open with safekeeping Bitcoin (BTC) and Ethereum (ETH), followed by extending the offering and eventually including execution for financial institutions, as Auerbach explained.
After the recent bankruptcies, the exchange group Nasdaq is attempting to fill in the boots of crypto middlemen.
Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets, reportedly told in an interview, that the exchange group is “pushing ahead” to get all the necessary technical infrastructure and regulatory approvals.
Different companies from the financial space have stepped up to provide safekeeping facilities. The fall of crypto lenders, well-established companies, and exchanges opened the doors for other giants to step in and test the waters. Back in Q4 2022, BNY Melon launched its new digital asset custody platform.
Parallelly, Fidelity is another prominent name that offers crypto safekeeping services. Alongside, BNP Paribas, the French financial giant, also stepped into the custody game in 2022. The group signed a crypto custody partnership with Swiss digital asset safekeeping firm Metaco last year.
Nasdaq Inc. has prior experience in the crypto market space. The group has provided market surveillance technologies to various crypto exchanges. In fact, it revealed the launch of the Hashdex Nasdaq Crypto Index ETF, which is based on its own index, in Q1 2021. Thus, with the arrival of traditional financial players into the crypto industry, overall adoption can be expected to rise.
Make sure you connect with us on discord and turn your post notifications on to receive updates about our live streams: https://discord.gg/kwVQtmu
The stock market is dropping and now is the best time to start investing in the stock market! Watch me trade live in the stock market. My learn plan profit group gets to watch me trade live every day, and get a feel of what they experience daily. -Ricky Gutierrez
There are only 2 ways to enter:
#1. Enroll in Learn Plan Profit and automatically earn 5,000 entries! $150 OFF Coupon"GTR" already applied, click here: https://bit.ly/3ZxwML4
#2. Buy anything from www.shoptechbuds.com , T-shirts, hoodies, hats, wall-art, or even a sticker will get you entered! $1 spent = 5 entries Remember it only takes 1 entry to get this Nissan GTR in your driveway or $50k in your bank account!