Key takeaways :
- Nasdaq has decided to pause its plans for a cryptocurrency custody service due to the prevailing regulatory uncertainties surrounding the crypto industry.
- The Nasdaq CEO reiterated the company’s commitment to digital asset business development.
In a surprising development, Nasdaq, one of the world’s largest stock exchanges, has announced the suspension of its planned cryptocurrency custody service launch.
The decision comes amidst a rapidly evolving landscape for digital assets and highlights the complexities and challenges faced by traditional financial institutions in entering the cryptocurrency space.
During an earnings call on Wednesday, Nasdaq’s CEO, Adena Friedman, announced that the company has abandoned its plans to launch a cryptocurrency custody service. The decision was driven by concerns related to the rapidly changing business and regulatory landscape in the United States.
As a result, Nasdaq has chosen to halt its efforts in establishing a U.S. digital assets custodian business and pursuing the necessary licenses.
Nasdaq had been poised to launch its cryptocurrency custody service to cater to institutional investors seeking secure storage solutions for their digital assets.
The proposed service aimed to provide a regulated and compliant platform for custody services, safeguarding cryptocurrencies on behalf of clients while adhering to strict regulatory requirements.
Despite the decision to halt its cryptocurrency custody service launch, Nasdaq’s CEO, Adena Friedman, emphasized the company’s unwavering commitment to digital asset business development.
She stated that Nasdaq is actively working on building and delivering advanced technology capabilities, positioning the exchange as a leading provider of digital asset software solutions to the global industry.
Friedman further clarified that Nasdaq’s focus includes advancing its custody solution as a technology platform, intending to serve the broader global digital assets marketplace.
By doing so, the exchange aims to be at the forefront of offering cutting-edge solutions for institutional investors and market participants in the digital asset space.
Nasdaq’s decision to reverse its plans represents a setback for the mainstream acceptance of cryptocurrencies in the United States.
The U-turn comes at a time when regulatory scrutiny on the crypto industry and its service providers is intensifying. The ongoing crackdown by regulators has created an atmosphere of uncertainty and caution among businesses operating in the crypto space.