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Michael Nagel | bloomberg | Getty Images
Nasdaq Its plans to launch a crypto custody business have been paused, CEO Adina Friedman said on the company’s earnings call Wednesday.
“Given the changing regulatory and business environment in the United States, we have made the decision to discontinue our launch of our US digital asset custodian business and related efforts to pursue related licensing,” she said. “However, we continue to build and deliver the technological capabilities that make Nasdaq a leading provider of digital asset software solutions to the broader global industry.”
Nasdaq is still offering the company’s listing Coinbase The papers for the recent Bitcoin ETF applications were filed by Black stone and others.
“More broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a number of ways, including through our continued engagement with regulators, offering end-to-end technology solutions across the trade lifecycle and through our partnerships with potential ETF issuers in order to support exchange-listed tradable products.” .
Exchange operator first Plans revealed to develop a custody solution in September along with the formation of its cryptocurrency business, Nasdaq Digital Assets. It is expected to be launched in the second quarter of this year as it awaits approval by the New York Department of Financial Services.
The issue of Crypto custody between institutions is seen as the key to propelling the industry into the mainstream in a post-FTX world. Efforts have been underway this year to create new solutions that separate trading and custody functions on cryptocurrency exchanges.
The Nasdaq pause comes as a slight disappointment to those encouraged recently by the momentum around spot Bitcoin ETF deposits by BlackRock and other institutions, as well as the recent court ruling in the SEC’s lawsuit against Ripple. Investors and other market participants had hoped that some of the regulatory pressures that had affected the industry since the beginning of the year would be relieved, and that allowing regulated products into the market might bring some clarity.
Meanwhile, Societe Generale received its crypto arm Wednesday approval from the French financial regulator To provide cryptocurrency services, including custody of cryptocurrencies. This adds to concerns that the United States could lose its edge in the cryptocurrency space as regulators continue to crack down on the industry while other jurisdictions embrace it.
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