NASDAQ, the stock exchange operator, plans to launch its crypto custody service before the end of the second quarter of 2022, according to a report by Bloomberg.
The move is part of NASDAQ’s foray into the cryptocurrency space, adding to the growing list of traditional financial firms making the switch to digital assets. The company has applied to the New York Department of Financial Services for a limited-purpose trust company charter to oversee the business.
NASDAQ first announced its intentions to offer custody services for Bitcoin and Ether to institutional investors in September 2022, and later hired Ira Auerbach, a former Gemini employee, to head its Nasdaq Digital Assets unit.
The recent collapse of Silvergate and Signature banks has left a gap in the cryptocurrency space, with experts predicting more traditional financial companies like NASDAQ could enter to fill it.
NASDAQ’s entry into the market could also signal positive mainstream adoption of cryptocurrencies, attracting more companies to the market.