The exchange giant joins Fidelity and BNY Mellon in pursuit of its own cryptocurrency custody platform.
Nasdaq, an American stock exchange based in New York City, is reportedly considering releasing a custody service for Bitcoin and other cryptocurrencies in the second quarter of 2023.
and interview Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said Nasdaq is “moving forward to obtain all necessary technical infrastructure and regulatory approvals.”
The report describes an infrastructure that may resemble that of Fidelity Digital Assets, which secretly opened its operations to the public last week. The first step to trading Bitcoin and cryptocurrencies on Nasdaq is an asset custody service.
According to a Bloomberg report, “Nasdaq has applied to the New York Department of Financial Services for approval of a limited-purpose trust company to oversee new businesses.”
Launched as several major cryptocurrency companies went bankrupt, offering currently platform-less customers a regulated, trusted Bitcoin American service amid heightened regulatory tensions seems to be the goal.
It should be noted that many of the issues surrounding exchanges stem from third-party risks presented by custodians who hold Bitcoin for their customers. The safest way to interact with Bitcoin is to keep it in your own wallet. While trading platforms certainly offer the ease of interaction created by custodianship, the American financial system has seen some shaky headlines lately, but compared to traditional bitcoin self-custody. It’s important to consider these trade-offs.