Nasdaq to launch investor-focused cryptocurrency custody services

Nasdaq (NDAQ), the second-largest U.S. stock market operator, announced it will offer digital asset custody services to institutional investors.

The company has also created a new branch devoted to digital assets and will initially offer Bitcoin and Ethereum custody services to institutional investors. The branch will be led by Gemini alumnus Ira Auerbach, with plans to expand the team to 40 employees by the end of 2022. 

‘Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth,’ said Tal Cohen, Executive Vice President and Head of North American Markets, Nasdaq.

The move comes after other Wall Street giants’ interest in the market. Last month, Blackrock, the world’s largest asset manager, announced that it will offer cryptocurrencies to its institutional clients and Depository Trust & Clearing Corp., which processes almost all U.S. stock market trades. 

Leading crypto exchange Coinbase and crypto custodians sAnchorage Digital and BitGo are also holding Bitcoin and Ether for its institutional clients. Meanwhile, financial institutions, including BNY Mellon and State Street , also provide cryptocurrency custody for institutional investors. 

Photo: Reuters