Nasdaq (NASDAQ) is making strategic moves to enter the cryptocurrency custody space, with plans to officially launch its digital asset custody services in Q2. Ira Auerbach, Head of Digital Assets at Nasdaq, revealed in a Paris interview that the exchange is building technical infrastructure and applying for a Limited Purpose Trust Company Charter with the New York Department of Financial Services (NYDFS).
Why Nasdaq’s Custody Service Stands Out
1. Compliance with NYDFS’s Rigorous Crypto Regulations
New York State enforces some of the strictest crypto regulations in the U.S., governed by the Virtual Currency Regulation (23 NYCRR Part 200). Entities operating in the state must obtain:
- A BitLicense, or
- A Limited Purpose Trust Charter
The NYDFS recently released updated guidelines clarifying custodial requirements, emphasizing:
✔ Segregation of client funds
✔ Enhanced disclosure protocols
2. SEC-Approved Qualified Custodian
In February, the SEC passed new rules mandating that investment advisers must use qualified custodians for crypto assets. Nasdaq positions itself as a trusted, regulated custodian, contrasting with exchanges like Coinbase, which faced SEC scrutiny.
👉 Explore how institutional players are shaping crypto custody
Nasdaq’s Long-Term Vision
While Bitcoin (BTC) and Ethereum (ETH) custody are the first steps, Nasdaq aims to:
- Provide execution services for financial institutions
- Bridge traditional finance and crypto markets
Auerbach emphasized:
"Regulatory clarity is critical—institutional investors aren’t leaving; they’re seeking compliant partners like us."
FAQ Section
Q1: When will Nasdaq’s crypto custody launch?
A: Targeting Q2, pending NYDFS approval.
Q2: Which cryptocurrencies will Nasdaq initially support?
A: BTC and ETH, with plans to expand.
Q3: How does Nasdaq compare to other institutional custodians?
A: Unlike unregulated exchanges, Nasdaq meets SEC and NYDFS standards, offering higher security.
👉 Why institutional custody is the future
Risk Disclosure
Cryptocurrency investments carry high volatility risk. Investors may lose their entire capital. Assess risks carefully.
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