Nasdaq Inc. is increasing its curiosity in cryptocurrency with a brand new group devoted to digital property that may initially launch a cryptocurrency custody service.
Regardless of some reports referencing solely unnamed sources, Tal Cohen, Nasdaq’s govt vice chairman and head of Northern American markets, has confirmed the trade’s plans.
The brand new digital property group is headed by Ira Auerbach, who beforehand ran prime dealer companies on the crypto trade Gemini Belief Co. LLC. “We imagine this subsequent wave of the revolution goes to be pushed by mass institutional adoption,” Auerbach told Bloomberg. “I can consider no higher place to convey that belief and model to the market than Nasdaq.”
The transfer by Nasdaq to supply crypto custody companies is a probable first step by Nasdaq into providing further cryptocurrency-related companies. A custody service would see Nasdaq securely storing digital property for purchasers to guard them from loss and theft. Holding these property is a primary step to Nasdaq providing further companies that purchasers can faucet into in the event that they want to switch or commerce their cryptocurrency holdings.
“Custody is foundational,” Cohen defined to Bloomberg. “Off the again of custody, we will begin to develop different options, provide execution companies, liquidity companies and take into consideration how we help new markets.” Cohen did observe that though Nasdaq has no instant plans to launch a cryptocurrency trade, it might consider the chance based mostly on the aggressive panorama and regulatory atmosphere.
Nasdaq’s transfer into crypto custody companies will see it compete with corporations akin to Coinbase Inc., Anchorage Labs Inc. and BitGo Inc.
The potential that Nasdaq could later pursue cryptocurrency trade companies comes as Wall Avenue heavyweights again a brand new trade aimed toward bringing conventional finance to digital asset buying and selling by intermediaries.
EDX Markets launched on Sept. 13 with the backing of Charles Schwab Corp., Citadel Securities, Constancy Digital Property, Paradigm, Sequoia Capital and Virtu Monetary. In an interview with CoinDesk, Chief Govt Officer Jamil Nazarali mentioned the trade will service establishment accounts and trade “long-term gamers” who’re “not investing to make a fast buck.”