The rollout of the custody service will occur in the middle of this year.
The organization will first introduce Bitcoin and Ethereum custody services.
Nasdaq, the exchange company, is stepping in to fill the void left by the recent failures of other crypto intermediaries. Earlier in 2022, in September, it was revealed by that Nasdaq Inc. was planning to provide its own cryptocurrency custody services. The most current information indicates that the rollout of the service will occur in the middle of this year.
The exchange company is moving forward to secure all the required technical infrastructure and regulatory permissions, according to an interview with Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets. Also, it has submitted an application for a limited-purpose trust corporation charter to the New York Department of Financial Services.
Wider Adoption by Conventional Institutions
According to Auerbach, the “first step” in developing the digital assets section will be to provide Bitcoin and Ethereum custody services. In the future, it will also include financial institution executions.
Moreover, some financial institutions are now offering vault storage services. There was room for other titans to test the waters after the collapse of crypto lenders, well-established enterprises, and exchanges. BNY Melon introduced its new digital asset custody platform in the fourth quarter of 2022.
Nasdaq, Inc. is a seasoned veteran in the cryptocurrency sector. Several cryptocurrency exchanges have benefited from the group’s market monitoring technology. In fact, it announced that its own index will be used to underpin an exchange-traded fund (ETF) in the first quarter of 2021. As a result, widespread acceptance is likely to increase as more conventional financial institutions enter the cryptocurrency market.