Nasdaq Drops Plans for Crypto Custody Service
Nasdaq CEO Adena Friedman announced in an earnings call that the stock market operator is abandoning its plans for a crypto custody service, which was scheduled to launch in Q2 of this year. This decision comes after Nasdaq had previously stated that it was working on the necessary infrastructure and regulatory approval for the custodian service. The company had even applied for a limited-purpose trust company license from the New York Department of Financial Services. Nasdaq’s retreat from the crypto custody sector is seen as a setback for institutional adoption of cryptocurrency in the United States.
Key Points:
- Nasdaq is no longer pursuing its plans to offer a crypto custody service.
- The infrastructure and regulatory approval for the service were being prepared earlier this year.
- The company had applied for a limited-purpose trust company license.
- Nasdaq’s withdrawal is seen as a blow to the institutional adoption of crypto in the U.S.
- Regulators in the U.S. have been targeting crypto firms and related services.
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Hot Take:
Nasdaq’s decision to drop its crypto custody service highlights the challenges and uncertainties surrounding the regulatory environment for cryptocurrencies in the United States. With regulators appearing to target crypto firms, institutions may hesitate to fully embrace the asset class. This setback could slow down the wider adoption of cryptocurrencies in the country and hinder the growth of the crypto market.
