American
stock exchange operator, Nasdaq, has abandoned its plan to expand its digital
asset services by introducing cryptocurrency custody services to institutional investors. year. The launch
of the service was initially planned as the Wall Street giant’s first major crypto project.
Earlier in
March, Ira Auerbach, the Head of Nasdaq Digital Assets, disclosed that the
marketplace operator had applied for a limited-purpose trust company
charter from the New
York financial services regulator. The exchange sought the
license so as to float a digital asset custody service.
However, during
an earnings call held today
(Wednesday), Adena Friedman, the exchange’s Chief
Executive Officer, told
investors the company had decided to
suspend the plan “considering the shifting business and regulatory environment
in the US.”
According
to CoinDesk, the Nasdaq CEO, however, noted the firm
will continue to support the digital asset industry,
including through efforts to
secure approval for spot Bitcoin exchange-traded funds (ETFs) from the
US Securities and Exchange Commission.
Nasdaq, one
of the biggest stock exchanges in the world, is a global financial services
powerhouse. During the second quarter of 2023 ended June, the company generated $1.43 billion in revenue.
In
September last year, the
exchange launched its digital asset services
division, with plans to diversify into crypto custody solutions. However, the decision to shelve the plan is a major blow to institutional clients who in recent years started showing enthusiasm for the crypto industry.
Nasdaq’s decision comes at a
time the SEC is waging a legal battle against Binance and Coinbase, the largest
crypto exchanges in the United States, alleging that both platforms
are operating without permission and engaging
in the sale of ‘unregistered’ crypto asset securities.
American
stock exchange operator, Nasdaq, has abandoned its plan to expand its digital
asset services by introducing cryptocurrency custody services to institutional investors. year. The launch
of the service was initially planned as the Wall Street giant’s first major crypto project.
Earlier in
March, Ira Auerbach, the Head of Nasdaq Digital Assets, disclosed that the
marketplace operator had applied for a limited-purpose trust company
charter from the New
York…
