NASDAQ has made an announcement about the launch of a new custody service. The officials have confirmed that they are now in the process of launching a new custody service for cryptocurrencies.
NASDAQ to Launch Crypto Custody Service
The NASDAQ officials have announced that have started working on the launch of a crypto custody service. Their service had been anticipated for a while and it was due to the growing demand among the investors.
The company now aims to launch the new service by the second quarter’s end. They have communicated the main reason why they have made the decision of launching the new custody service.
With the crypto industry growing more attractive after an entire year, its demand and interest have risen among institutional investors. They want to know about the industry and what it has to offer.
They want to offer their users a custody service for cryptocurrencies that are regulated and safe. It had been a while since they were recording a surge in demand and interest for the services.
They have now decided that they will be offering the service to institutional investors in the form of a custody service.
Statement by Head of NASDAQ Digital Assets and SVP
Ira Auerbach recently made a statement pertaining to the launch of their services in the crypto sector. Auerbach revealed that they are doing all the things they consider necessary in offering services to institutional investors.
As of now, they are collecting all the necessary information and details about the technical infrastructure for offering crypto custody services. They are also getting regulatory approvals wherever necessary to run their operations as normal.
Request Submitted for Approval
Auerbach has revealed that they are already in talks with the Department of Financial Services in New York for the approval of their new custody service.
They have created a trust company charter, which is going to be a limited-purpose company. The particular company will be responsible for overseeing the entire crypto custody service process.
Through the new service, investors from the institutional market will have the opportunity of dipping their toes into the particular industry.
They will be able to interact with the digital asset industry in the safest and most regulated manner. They will be able to interact with the particular marketplace that mainly deals with most of the digital assets from around the world.
Initial Consideration
It was back in September 2022 when NASDAQ shared its plans of launching a crypto custody service. In September, the company announced that they were planning to establish an entity that would focus on crypto custody services.
Back then, the exchange group had announced that they will be launching a new division for digital assets. They had revealed that the name of the new entity would be NASDAQ Digital Assets.
It seems that the exchange group has finally put its plans into motion. They have applied for the authorization of the new entity and things will start to materialize by the end of Q2 2023.
Initial Offerings through the Custody
According to the officials, they are aiming to launch the custody services for the major tokens in the initial round. The exchange group is currently aiming to launch custody services for Ether and Bitcoin.
Going forward, they plan on launching more services for the users. These services will be liquidity and execution. As of now, they are planning for the Ether and Bitcoin custody services and then adding more to the portfolio.
According to the exchange group, the reason for choosing custody services is the nature of such a segment. These are foundational for any investment segment, which is why they have decided to go for it. Firstly, they will experiment with the custody services and then take things further with the provisioning of services such as liquidity and execution.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
