Nasdaq froze the initiative to launch a platform for storing digital assets.
CEO Adena Friedman, in the second-quarter 2023 report, said the decision was taken because of “regulatory risks” in the United States.
“Given the evolving corporate and regulatory environment in the United States, we have decided to pause the launch of our cryptocurrency custody business in the United States and the related efforts to obtain the necessary license,” she explained.
However, Friedman emphasised that Nasdaq remains committed to developing the digital-asset space. She said the exchange is working on a technology platform to serve a more global market.
In the coming months, the exchange will keep a close eye on regulatory developments for the crypto industry, she added.
Nasdaq first announced the initiative to create a custodial service for digital assets in March 2023. The exchange had planned to launch the platform in the second quarter.
In September 2022, media reported on Nasdaq assembling a team to develop a solution for storing cryptocurrencies. The exchange filed an application with NYDFS for the corresponding license.
The regulatory approval for launching the crypto-custodial service obtained by the American holding company BNY Mellon.
In June 2023, the Chicago Mercantile Exchange launched trading of a contract tracking the Ethereum-to-Bitcoin ratio on futures.
In July, Nasdaq added Coinbase as a partner for joint market surveillance in the updated application for a spot Bitcoin ETF from BlackRock.