Nasdaq will join Fidelity and BNY Mellon on the list of exchange platforms with their crypto custody service.
What Is Nasdaq?
National Association of Securities Dealers Automated Quotations (Nasdaq) in New York City is one of the world’s largest stock exchanges. It is an American electronic stock exchange where technology and growth-oriented companies trade shares. It was founded in 1971 and is known for its high volatility and voluminous listed technology companies.
Some famous companies on Nasdaq are Apple, Amazon, Google, Facebook, and Microsoft.
Nasdaq also provides services, including market data, trading technology, and corporate solutions, to financial professionals and companies.
What Is Crypto Custody?
Crypto custody refers to storing and controlling digital assets, such as cryptocurrencies and tokens. It involves safeguarding the private keys that provide access to the virtual assets, typically through secure offline storage.
Custody is necessary for investors and institutions who want to guarantee the safety of their digital assets. The service is similar to how banks provide safekeeping for traditional financial assets.
Nasdaq To Release Crypto Custody In Q2 2023
This step of Nasdaq is coming in the middle of the failures of several prominent crypto firms!
Nasdaq had previously announced its goal for the digital assets sector. The exchange platform’s vision will advance and help facilitate broader institutional participation in digital assets. Nasdaq is willing to “play a central role in combatting the rising threat of financial crime” in crypto.
Nasdaq has applied to the New York Department of Financial Services for a limited-purpose trust company charter to watch the new service. The custody service will be Nasdaq’s first move in offering BTC and crypto trading to its customers. Nasdaq’s crypto custody will provide a stable and dependable American platform for trading Bitcoin.
The U.S. Securities and Exchange Commission has been closely monitoring crypto-asset custodians. This regulatory agency has warned that crypto investors are at a “significant” risk of losing their assets. Nasdaq’s custody service can be a good solution for the risk.
Nasdaq reports that money laundering in the crypto industry was about $8.6 billion in 2021. To combat such activities, it will further develop Verafin and Surveillance to offer a group of “crypto-specific detection capabilities’’. These new features will “effectively mitigate risks and provide continuous monitoring of anti-money laundering, fraud detection, and market abuse”.