• Nasdaq had planned to launch its crypto custody services before the end of Q2, 2023, but has decided to suspend the launch due to regulatory risks in the United States.
• CEO Adena Friedman affirmed that Nasdaq remains committed to digital asset business development and will closely monitor the market for potential regulatory events in the coming months.
• Recently, major crypto-affiliated companies have been resubmitting their spot Bitcoin exchange-traded funds (ETF) applications with the SEC, many of which are planning to list them on Nasdaq’s exchange.
Nasdaq Suspends Launch of Crypto Custody Services
Nasdaq had announced it will launch a crypto custody service before the end of Q2, 2023. However, due to shifting business and regulatory environment in the United States, Nasdaq has suspended launching this service. CEO Adena Friedman confirmed this suspension during a Q2 results call and said: “Considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license.“
Nasdaq Still Committed To Cryptocurrencies
Despite suspending its own cryptocurrency custody services, Nasdaq is still committed towards digital asset business development and has urged customers that it will closely monitor market for any potential regulatory events in coming months. This news comes as major crypto-affiliated companies have started resubmitting their spot Bitcoin exchange-traded funds (ETF) applications with SEC where many plan on listing them on Nasdaq’s exchange.
SEC Accepts Valkyrie Spot Bitcoin ETF Application
The US Securities & Exchange Commission recently accepted an application from Valkyrie Spot Bitcoin ETF which is one of many such applications being submitted by various firms who are looking forward to issuing BTC ETFs on Nasdaq’s exchange platform. The SEC is currently going through all these applications for approval or rejection process.
What Is A Crypto Custody Service?
A Crypto Custody Service is a platform which enables investors store their cryptocurrencies securely with a third party provider instead of holding them directly in wallets or exchanges which could be vulnerable to hacking or other security threats. Such services provide greater levels of security for users who want more control over their crypto assets without having to worry about managing private keys or taking any additional steps themselves for extra security protocols like 2FA authentication etc..
Nasdaq had planned launching its own cryptocurrency custody services but was forced to suspend due changing regulations within US markets along with variety of other factors including lack certain licenses required offer such services legally within country’s borders. Despite this setback however, firm still remain committed digital asset business development while keeping close eye out any potential upcoming regulations surrounding industry moving forward .