Nasdaq Abandons Crypto Custody Service Amid U.S. Regulatory Challenges
Nasdaq has scrapped plans for a cryptocurrency custody service amid recent regulatory challenges.
During an earnings call on Wednesday, Nasdaq CEO Adena Friedman said the company has chosen to abandon its plans due to the changing business and regulatory landscape in the United States.
“Considering the shifting business and regulatory environment in the U.S., we’ve made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue a relevant license,” she said.
“However, we continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry.”
Friedman explained that the decision comes even as Nasdaq has put in significant effort to establish the necessary infrastructure and gain regulatory approval for the custody service.
In fact, the firm had even applied to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company to oversee the custody business.
The CEO noted that Nasdaq will continue to engage with crypto companies, partnering with potential exchange-traded fund (ETF) issuers.
“More broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways, among them through our ongoing engagement with regulators, the delivery of comprehensive technology solutions across the trade life cycle and through our partnerships with potential ETF issuers to support tradable exchange listed products,” Friedman added.
As reported, Nasdaq announced back in March that it aims to launch its much-anticipated crypto custody service by the end of the second quarter to meet the increasing institutional interest and demand for
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