The cryptocurrency industry has faced numerous challenges over the past year, but the negative events are not hindering some of the largest crypto players from showing interest in the sector. Five months after Nasdaq launched its digital asset services division, the securities marketplace is exploring cryptocurrency custody services.

Nasdaq to offer crypto custody services

Nasdaq plans to launch its cryptocurrency custody services by the end of the second quarter of 2023. A report by Bloomberg said that Nasdaq, a major player on Wall Street, had applied for a limited-purpose trust company charter offered by New York financial service regulators.

The Head of Nasdaq Digital Assets, Ira Auerbach, has confirmed that the securities marketplace is seeking regulatory approval to offer crypto custody services. The stock exchange group is currently searching for regulatory permits to install the technical infrastructure.

The launch of custody services by Nasdaq will mark the first major project launched by the exchange operator in the cryptocurrency sector. Nasdaq had initially unveiled plans to expand its operations into the cryptocurrency sector in September last year.

Last year, Nasdaq had said that its intentions in the digital asset space were to offer services targeting institutional clients. The trading platform has also confirmed immediate plans to offer crypto trading services.

According to Nasdaq, the decision to offer crypto-related services could be finalized depending on the regulatory landscape and competition in the industry. However, Auerbach conducted an interview saying that the company would expand its offerings with time to include other services such as execution.

Nasdaq is a marketplace with a solid presence in the traditional finance sector, which could be seen in the digital asset space. Given that institutional clients are increasingly interested in digital assets, Nasdaq is well-positioned to offer crypto services to this clientele base.

Nasdaq currently offers marketplace technology for cryptocurrency exchanges. It also provides crypto-related anti-financial crime offerings and crypto-related index solutions targeting tradable products.

The securities marketplace believes it is uniquely positioned to provide related index solutions targeting tradable products. According to the company, these solutions would accelerate the broader adoption of digital assets and drive sustainable growth in the industry.

Institutions show interest in crypto assets

In the last few years, multiple financial institutions on Wall Street have shown increased interest in the cryptocurrency sector. In early 2022, BNY Mellon, one of the largest and old banks in the US, unveiled plans to offer a crypto custody platform.

Other institutions also expanding to this space include Fidelity and JPMorgan. The two firms have launched crypto-related offerings, citing demand from their clients. Interest in the digital asset space has not slowed despite multiple scandals that rocked the crypto industry in 2022 and the subsequent bear market that led to most crypto assets losing their value.