Nasdaq Starts Crypto Custody Service for Institutional Clients

The exchange said it is open to working with crypto-native firms.

AccessTimeIconSep 20, 2022 at 12:37 p.m. UTC
Updated May 11, 2023 at 6:52 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Nasdaq (NDAQ), the second-largest U.S. stock market operator, is starting a cryptocurrency custody service as it aims to cash in on the demand from institutional crypto investors, according to a press release on Tuesday.

The company has hired Ira Auerbach, who previously ran prime brokerage services at Gemini, as the head of its digital assets unit, the release said.

Nasdaq's move into crypto follows a wider trend across Wall Street. Last month, BlackRock, the world's largest asset manager, said it will offer cryptocurrencies to its institutional clients, and Depository Trust & Clearing Corp., which processes almost all U.S. stock market trades, released its own blockchain as it looks to speed up the settlement of trades.

“Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth,” Tal Cohen, head of North American markets at Nasdaq, said in the release.

Nasdaq will compete with crypto exchange Coinbase and crypto custodians sAnchorage Digital and BitGo in holding bitcoin (BTC) and ether (ETH) for institutional clients in the U.S.

Auerbach said that Nasdaq is open to working with crypto-native firms, although it doesn't have any plans for acquisitions in the short term, a Bloomberg report said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.

Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.