Nasdaq to launch crypto-custodial service for institutions

The Nasdaq stock exchange has formed a team focused on digital assets that will develop custody solutions for storing Bitcoin and Ethereum for institutional investors. Bloomberg reports.

The platform has filed an application with NYDFS to provide custodial services.

Ira Auerbach will become Senior Vice President and Head of the Digital Assets Division. He previously served as Director of Prime Brokerage Services at Gemini. By the end of the year, his team will number 40 specialists.

“In addition to custody, we can begin developing other solutions, offering execution and liquidity provision services,” said Tal Cohen, the company’s executive vice president and head of North American markets.

The top executive did not rule out a future launch of a cryptocurrency exchange, citing the regulatory environment and competitive landscape.

“We know how to act within regulatory regimes, and we continue to innovate in line with regulatory rules,” said Cohen.

Nasdaq has offered its software to industry participants on an outsourced basis, including surveillance and trading tools. The Verafin and Surveillance products enable investigations into money laundering, fraud and manipulation.

The exchange also offered an order-matching technology for crypto platforms such as Bitstamp.

According to Auerbach, Nasdaq is also open to exploring partnerships and potential deals with crypto firms, although it does not plan to pursue acquisitions in the near term.

In August, Coinbase and the asset-management firm BlackRock agreed to provide clients with direct access to trading digital assets.

Earlier, the largest broker in Brazil, XP Inc., in collaboration with Nasdaq announced plans to launch a platform for trading digital assets called XTAGE.

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