Nasdaq, United States’ second largest stock exchange, initiates the first step to entering the crypto world. The exchange plans to offer bitcoin & ether custody services to institutional clients. Like many other firms, the wall street giant took a leap of faith in crypto and blockchain. As the firm becomes the custodian of digital assets, a wave of excitement and speculations dominates the investors.
Nasdaq venture as custodian of digital assets
The exchange platform surprised people when on Sep 20, it announced its venture to offer crypto custody services to institutional investors. According to the new move by Nasdaq, they will provide services similar to that offered by Anchorage or Coinbase to small financial companies. To fulfil their goals and achieve a competitive edge against established crypto firms like Coinbase, they hired Ira Auerbach, a Gemini alum.
In a statement, the firm revealed that they are ready to work with different crypto-native organisations. The statement indicates the exchange’s newfound interest in cryptocurrency. Recently, there has been excessive demand for digital assets among institutional investors, and Nasdaq’s venture is well thought out. Tai Cohen believes the firm will drive sustainable growth and encourage several other financial firms to understand the relevance of crypto and blockchain.
What are crypto custody services?
As we all know about the volatility and insecurity associated with cryptocurrencies, custody services have become significant. Custody services are generally provided by a third party which mainly ensures that institutional investors store their crypto wallets safely. It looks into the security frameworks of both hot and cold wallets.
With the ever-changing and continuously growing crypto space, the demand for the custodian of digital assets is becoming more relevant. It is often viewed as a smooth bridge between the crypto space and the traditional institutional investment market.
Nasdaq has to compete with the already reputable custodian Coinbase, which has served institutional investors for a longer period.