Nasdaq to Offer Crypto Custody Service to Institutional Investors

English Sep 27, 2022

Nasdaq, the US stock exchange, is planning to launch its own cryptocurrency custody service aimed at institutional investors.

The exchange intends to initially offer Bitcoin and Ethereum-only custody services to institutional investors such as hedge funds. The new division will be called Nasdaq Digital Assets.

Nasdaq already offers security and surveillance tools for cryptocurrency companies, but will not transition to offering cryptocurrency trading for now.

With high demand from institutional investors, Wall Street firms seem to expect the best from the crypto market despite the recent cryptocurrency crisis. BlackRock teamed up with Coinbase in August to offer its clients Bitcoin trading as well as its own Bitcoin investment product. JPMorgan Chase has recently built a blockchain-based trading platform, and Goldman Sachs is set to follow suit. Charles Schwab and Fidelity, among others, supported the new EDX Markets exchange, which will begin trading later this year.

Institutional investors have been understandably wary of entering the crypto space, especially given various hacks. Cryptocurrency escrow services promise greater security by providing storage services to institutions that hold large amounts of digital currency.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.