• Nasdaq halts launch of its cryptocurrency custody service due to regulatory risks in the United States.
• Nasdaq remains committed to digital asset business development and will be monitoring market events in the near future.
• The firm had planned to launch an official division allowing customers to safely store Bitcoin (BTC) and Ether (ETH).
Nasdaq Halts Launch of Cryptocurrency Custody Service
Global securities marketplace Nasdaq is halting the launch of its own cryptocurrency custody that it previously planned to roll out by the end of the second quarter of 2023. This suspension is due to regulatory risks in the United States, as announced by CEO Adena Friedman during the firm’s Q2 results call.
Commitment To Digital Asset Business Development
Despite this decision, Friedman emphasized that the company remains committed to digital asset business development, stating: “We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry.” The executive also added that Nasdaq will closely monitor the market for potential regulatory events in the coming months.
Initial Plans For Crypto Custody Project
Nasdaq initially announced its crypto custody project in September 2022 with plans of launching an official division allowing customers to safely store Bitcoin (BTC) and Ether (ETH). The firm aimed at launching by July 2023 but has now been halted.
Bitcoin Exchange-Traded Funds On Nasdaq
The news comes as major cryptocurrency firms are also working to list spot Bitcoin exchange-traded funds (ETF) on the Nasdaq exchange. The United States Securities and Exchange Commission is currently considering two spot Bitcoin ETF proposals under Nasdaq Rule 5711.
This is a developing story, and further information will be added as it becomes available.