The exchange giant joins Fidelity and BNY Mellon in pursuit of their own cryptocurrency custody platform.
The Nasdaq, a US exchange based in New York, is reportedly considering the second quarter of 2023 for the release of its custodial services for Bitcoin and other cryptocurrencies.
In a interview with Bloomberg, Nasdaq Senior Vice President and Head of Digital Assets Ira Auerbach said the Nasdaq is “working to put in place all necessary technical infrastructure and regulatory approvals.”
The report describes an infrastructure that could resemble that of Fidelity Digital Assets, which quietly opened its operations to the public last week. The first step in trading bitcoins and cryptocurrencies on the Nasdaq would be the asset custodial service.
According to the Bloomberg report, “Nasdaq has applied to the New York Department of Financial Services for a charter of a limited-purpose trust company, which would oversee the new venture.”
Launched just as several major cryptocurrency companies collapsed, amid growing regulatory tension, the goal is apparently to offer customers who no longer have a platform, a regulated American service and of trust for bitcoin.
It should be noted that many of the problems with exchanges stem from third-party risks presented by a custodian holding bitcoins for customers. The safest way to interact with bitcoin is to hold it with your own wallet. Although trading platforms offer the ease of interaction created by custody, with the US financial system making shaky headlines recently, it is important to consider these trade-offs against traditional Bitcoin self-custody.