• Nasdaq aims to launch crypto custody services in the second quarter of this year.
• The exchange operator is seeking regulatory approval as a crypto custodian.
• Nasdaq will join other large financial firms such as BNY Mellon and Fidelity offering various services to the crypto market.

Nasdaq Aiming for Crypto Custody Services

U.S. exchange operator Nasdaq plans to launch its own custody services for crypto assets by the end of June. This is the first move into the crypto economy for the company, which runs one of America’s largest stock exchanges by market capitalization of traded shares. The group is now working to obtain necessary approvals from regulatory bodies that will allow it to provide such services, according to Bloomberg reports.

Applied For Trust Company Charter

In order to get started with its crypto business, Nasdaq has applied for a limited-purpose trust company charter, which would oversee its new operation. Ira Auerbach, senior vice president and head of Nasdaq Digital Assets revealed in an interview that they are currently looking into getting approved by New York Department of Financial Services before they can launch their custody service.

Crypto Winter Affects Banks

The Cryptocurrency Winter caused by falling prices have also affected banks exposed to digital assets leading up to failures like FTX, one of the largest cryptocurrency exchanges and Silvergate Bank and Silicon Valley Bank in U.S going bankrupted as well.

Financial Firms Offering Various Crypto Services

With this initiative, Nasdaq joins other large financial firms such as BNY Mellon and Fidelity who are offering various services related to cryptocurrencies including safekeeping assets like Bitcoin (BTC) and Ether (ETH), providing tokenization of traditional assets and execution for financial institutions etc .

Conclusion

Nasdaq’s move into the industry marks a major development in terms of traditional financial firms playing a role as intermediaries in the cryptocurrency sector which saw some major players collapse recently due to falling prices caused by Crypto Winter .