Nasdaq’s Crypto Custody – A Step Towards Legitimizing Cryptocurrencies

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Nasdaqs Crypto Custody A Step towards Legitimizing Cryptocurrencies

Key highlights:

The company’s reputation for innovation and trustworthiness could be a game-changer, legitimizing cryptocurrencies for traditional investors and the wider public.
Nasdaq’s crypto custody service will allow investors to securely hold their digital assets without worrying about the safety of “keys stored on exchanges”.
The platform could also introduce more sophisticated solutions for crypto custody in the future, such as multi-signature wallets and time-locked withdrawals.

According to the news of Bloomberg yesterday, the world-renowned stock exchange is preparing to dive headfirst into the world of cryptocurrencies. The company has announced plans to launch its very own crypto custody service by the end of Q2. This news is making waves in the industry and for good reason. Nasdaq’s entry into the crypto space signifies a major shift in the financial world’s perception of digital currencies.

Nasdaq expects to launch crypto safekeeping services this year, joining a growing pool of traditional finance firms moving into the sector after a spate of bankruptcies https://t.co/Jz8TuFARcs

— Bloomberg (@business) March 24, 2023

Nasdaq is moving forward to complete all necessary technical infrastructure and regulatory approvals for its crypto service, Ira Auerbach, senior vice president and head of Nasdaq Digital Assets, said in an interview in Paris. They have applied to the New York Department of Financial Services (NYDFS) for a trust company contract.

Nasdaq first announced this project in September 2022. The Wall Street giant’s decision to enter the crypto custody market isn’t just a token gesture. With their reputation for innovation and trustworthiness, the company’s entrance into the crypto space could be a game-changer, legitimizing cryptocurrencies in the eyes of traditional investors and the wider public.

With Nasdaq’s solution, investors can securely hold their digital assets without worrying if “keys stored on exchanges are safe.” This could unleash a new wave of investments in cryptocurrencies like Bitcoin and Ethereum.

The Ripple Effect on the Cryptocurrency Ecosystem

Nasdaq’s foray into crypto custody is bound to have far-reaching implications for the industry. As a trusted name in the financial world, Nasdaq’s entry into the market could pave the way for more institutional investors to embrace cryptocurrencies as a viable asset class.

Nasdaq joins this ecosystem after titans like Fidelity and BNY Mellon. According to Nasdaq’s report, in 2021, cryptocurrency-based money laundering exceeded $8.6 billion. Nasdaq’s announcement to launch a crypto custody service is a testament to the growing influence of digital currencies in the financial world. As the industry continues to evolve, we can only hope that more established institutions will follow Nasdaq’s lead, ushering in a new era of innovation, growth, and inclusivity in the world of cryptocurrencies.