Nasdaq’s commitment to digital asset business development remains steadfast. However, the planned launch of its cryptocurrency custody service, initially scheduled for the end of Q2 2023, has been halted.
CEO Adena Friedman disclosed during the Q2 results call that the decision was driven by regulatory risks in the United States.
Despite previous intentions to establish a digital assets custodian division for secure storage of Bitcoin (BTC) and Ether, Nasdaq has chosen to suspend the initiative and related licensing pursuits due to the evolving business and regulatory landscape.
Speaking about the decision, Friedman said:
“This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license.”
This announcement follows the company’s initial declaration of the crypto custody project in September 2022, which had been progressing toward a targeted launch by the end of July 2023.
However, the CEO also reaffirmed NASDAQ’s commitment to digital asset development, saying:
“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.”
Concurrently, Nasdaq is monitoring the developments of spot Bitcoin exchange-traded funds (ETFs) as it considers two proposals under Nasdaq Rule 5711 for listing on its exchange.