Despite calling off the launch of its crypto custody services, Nasdaq maintains a robust commitment to developing digital asset businesses.
Nasdaq, the global securities marketplace, has decided to suspend the rollout of its anticipated cryptocurrency custody, which was expected to be up and running by the end of Q2 2023.
It is believed that the decision was taken in light of the evolving business landscape and regulatory uncertainties within the United States.
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In a recent Q2 earnings call, CEO Adena Friedman confirmed these claims declaring that the suspension of the proposed digital asset custody business was linked to the risk factor associated with US regulations.
This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the US digital assets custodian business and our related efforts to pursue relevant license.
However, Friedman emphasized that Nasdaq maintains a robust commitment to developing digital asset businesses. In her words:
We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry. This includes advancing our custody solution as a technology platform to serve the broader, global digital assets marketplace.
The CEO also mentioned that, in the upcoming months, Nasdaq intends to keep a close eye on the market for any potential regulatory developments.
The original plan for the cryptocurrency custody project was announced in September 2022. The initiative aimed to launch a specialized division to offer clients a secure environment for storing Bitcoin (BTC) and Ether (ETH).
Nasdaq started its active development toward the goal in March and hoped to launch the platform by the end of July.
This news emerges as several firms strive to launch spot Bitcoin exchange-traded funds (ETF). Major players, including Fidelity, BlackRock, and WisdomTree, are striving to get their spot Bitcoin ETFs approved by the US Securities and Exchange Commission.
