In a recent development, Nasdaq Inc. is on track to launch its digital asset custody services by the end of Q2 2023, as reported by Bloomberg.

According to a Bloomberg report by Anna Irrera published on Friday (March 24), the global exchange group is making strides to ensure all necessary technical infrastructure and regulatory approvals are in place as they join a growing number of traditional financial firms stepping into the role of crypto custodians in the wake of several industry bankruptcies.

As stated in an interview in Paris with Ira Auerbach, Senior Vice President and Head of Nasdaq Digital Assets, the company has applied to the New York Department of Financial Services for a limited-purpose trust company charter, which would supervise the new business. Initially announced in September, this move marks Nasdaq’s first significant venture into the crypto space.

The primary focus of Nasdaq’s digital asset division will be safeguarding Bitcoin and Ether, with plans to expand into a comprehensive suite of services for financial institutions, including execution. The collapse of cryptocurrency prices and subsequent bankruptcies, such as the FTX exchange in November, has opened the door for traditional finance firms like Nasdaq to enter the market. Nasdaq will be joining the ranks of BNY Mellon and Fidelity, which are already offering crypto custody services, while others concentrate on tokenizing conventional assets like bonds to improve their trading and processing efficiency.

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