Nasdaq has decided to cancel its plans for a crypto custody service due to concerns in the business and regulatory environment, according to CEO Adena Friedman. The exchange operator had been waiting for approval from the New York Department of Financial Services to offer custody services, but has now halted its launch. Nasdaq had previously announced its intention to move into the crypto space after the collapse of Three Arrows last year. Despite the slump in the crypto market, Nasdaq had continued to forge ahead. However, Friedman stated that the exchange will focus on building technology to position itself as a leading digital assets software solutions provider. Nasdaq is also awaiting approval for a spot bitcoin ETF that it partnered with BlackRock on, but the SEC has not yet given the green light. Friedman emphasized Nasdaq’s commitment to supporting the digital assets ecosystem through engagement with regulators, technology solutions, and partnerships with potential ETF issuers.
– Nasdaq cancels plans for crypto custody service due to business and regulatory concerns.
– The exchange had been awaiting approval from the New York Department of Financial Services.
– Nasdaq will focus on building technology to become a leading digital assets software solutions provider.
– The exchange is also waiting for approval for a spot bitcoin ETF.
– Nasdaq remains committed to supporting the digital assets ecosystem through various means.
Hot Take: Nasdaq’s decision to cancel its crypto custody service reflects the challenges and uncertainties faced by traditional financial institutions entering the crypto space. Despite the setback, Nasdaq’s focus on technology and commitment to the digital assets ecosystem indicate its determination to be a major player in the industry. The approval of a spot bitcoin ETF would be a significant milestone for Nasdaq and the broader crypto market.
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