Nasdaq Inc. has a growing interest in cryptocurrency. So much so that it’s looking to expand itself in the crypto space by establishing a group that’s dedicated to digital currency research and custodial offerings, meaning it could soon be able to hold crypto assets for its many clients.
Nasdaq Wants to Offer Crypto Custody Services
The company’s plans were recently confirmed by its executive vice president Tai Cohen. The new group will be headed by a man named Ira Auerbach, who recently had the job of running prime broker services at the New York-based digital currency exchange Gemini, which is headed by Cameron and Tyler Winklevoss. In a statement, Auerbach explained:
“We believe this next wave of the revolution is going to be driven by mass institutional adoption. I can think of no better place to bring that trust and brand to the market than Nasdaq.”
The move is a testament to how strong crypto remains. Throughout the year, the digital currency space has been suffering like it never has before. The price of bitcoin, for example, has fallen by more than 70 percent from its all-time high of $68,000 per unit, which was achieved last November. At the time of writing, bitcoin is struggling to just maintain a position in the low $19,000 range. It’s a sad and ugly sight.
In addition, the crypto space has lost a total valuation of more than $2 trillion. This is rough considering just earlier in the year, the space was valued at more than $3 trillion, having hit a new record in that department. Still, what’s great about this news is that despite falling prices, the industry continues to be seen as a mainstream investing arena with lots of strength and benefits to offer.
Tai Cohen explained in an interview:
“Custody is foundational. Off the back of custody, we can start to develop other solutions, offer execution services, and liquidity services, and think about how we support new markets.”
No Exchange Yet, but Maybe in the Future
He further commented that while Nasdaq doesn’t presently have any plans to launch a digital currency exchange, he said this can always change in the future, and thus he advised traders to keep their eyes open for any upcoming announcements. This news follows the headline that Wall Street is presently looking to launch a new exchange all its own that will bring traditional finance protocols to the crypto world.
This would be Nasdaq’s first foray into digital currency custody. The move would allow the company to not only hold crypto assets for traders, but it would also be required to implement tactics to keep these assets safe from theft and fraud. By entering this new arena, Nasdaq is likely to face heavy competition from the likes of Coinbase, Anchorage Labs, and Bit Go to name a few.