One of the world’s major stock exchanges is opening a cryptocurrency division that will offer customers digital asset storage services, as well as tools to ensure the security of crypto companies.
The US exchange Nasdaq is acting as part of a Wall Street strategy to attract institutional investors in the face of a recession in the cryptocurrency markets. Nasdaq Digital Assets will initially offer custody services for Bitcoin (BTC) and Ether (ETH) to hedge funds.
The exchange has hired the former head of crypto brokerage Gemini Prime, Ira Auerbach, to lead the new service. The move will reportedly put the Nasdaq in competition with companies like BitGo and Coinbase, as well as BNY Mellon and State Street. The exchange will first have to get regulatory approval, and if it succeeds, then a new major player will enter the cryptocurrency market, says Auerbach:
“We believe that the next wave of adoption of digital currencies in society will be driven by massive institutional adoption. So I can’t think of a better place to build confidence in this market than the Nasdaq.”
The company is not yet going to offer cryptocurrency exchange services, but it will offer tools for crypto-currency firms to monitor and ensure security, says Nasdaq CEO Tal Cohen:
“We have extensive experience in working under regulatory regimes. We also believe that regulation is a fundamental factor in such work, in addition, our clients also support this approach.”
Nasdaq’s research arm previously published a report stating that out of 500 financial advisors who invest or plan to invest in cryptocurrencies, 72% would invest in bitcoin spot ETFs.
Source: Bits
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