Stock market operator Nasdaq is making a significant move into the cryptocurrency space by launching a digital asset custody service aimed at institutional investors.
Led by former Gemini executive Ira Auerbach, Nasdaq Digital Assets will initially provide custody services for bitcoin and ether to financial institutions, competing with firms like Coinbase and Anchorage Digital.
While regulatory approval is still pending, the new unit promises a custody solution that combines liquidity and execution services to tackle industry challenges related to connectivity, availability, and efficiency. This proprietary offering aims to merge the benefits of both hot and cold crypto wallets, ensuring high accessibility and scalability without compromising security.
Tal Cohen, EVP and head of North American Markets at Nasdaq, highlighted the growing demand among institutional investors for digital assets. He stated that Nasdaq is well positioned to facilitate broader adoption and promote sustainable growth in this area. With a solid reputation and history as a technology provider for global capital markets, Nasdaq is poised to address key industry pain points, enhancing liquidity, scalability, and resilience, ultimately fostering greater trust in the digital assets ecosystem.
In addition to these developments, Nasdaq is also enhancing its anti-financial crime technology capabilities, introducing a range of crypto-specific detection solutions.