Nasdaq to Launch Crypto Custody Service

Nasdaq has introduced a brand new enterprise, Nasdaq Digital Assets, which can promote institutional participation in digital belongings, a press release mentioned Tuesday (Sept. 20).

This will present “trusted and institutional-grade solutions” which can concentrate on custody, liquidity and integrity.

Nasdaq Digital Assets will start by growing a cryptocurrency custody resolution that can carry collectively the “best attributes of hot and cold crypto wallets” and can provide accessibility, scalability and safety. The custody service, offering liquidity and execution providers for monetary establishments, is topic to regulatory approval.

To fight the rising monetary crime in digital belongings, Nasdaq has increasing its crimefighting capabilities into the crypto house. Its Verafin and Surveillance merchandise present anti-money laundering and fraud detection to each digital and fiat belongings.

Nasdaq Digital Assets will likely be led by Ira Auerbach, the senior vp and head of digital belongings. Auerbach beforehand was Global Head of Gemini Prime, the crypto platform brokerage service.

“Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” mentioned Adena Friedman, president and chief government officer of Nasdaq.

Friedman added that the digital asset expertise may remodel markets over the long-term.

This comes regardless of the tough summer season the crypto market has had for mergers and SPAC acquisitions, with lots of them falling aside in latest months.

Read extra: Market Volatility, Souring SPAC Outlook Create Cruel Summer for Crypto M&A

PYMNTS wrote that there had been 5 offers for crypto companies to go public with SPACs that collapsed between July and August. It adopted the overall pattern of crypto costs being down for months. Bitcoin’s value was down round 65% from its excessive from final November, and in July, stumbled under the $20,000 line.

Firms which can be already public additionally noticed worsening outcomes — the highest-profile agency, Coinbase Global, noticed its inventory value plummet, falling 64% within the second quarter alone whereas buying and selling exercise fell drastically.

In addition, the acquisition of crypto custody agency BitGo by Galaxy Digital, which fell aside, noticed extra turmoil in August as the vendor filed a lawsuit demanding a $100 million breakup price.

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