Nasdaq halts launch of cryptocurrency custody service

Global securities marketplace Nasdaq is halting the launch of its own cryptocurrency custody that it previously planned to roll out by the end of the second quarter 2023.

Nasdaq has suspended the launch of its digital asset custody business because of regulatory risks in the United States, CEO Adena Friedman announced during the Q2 results call.

“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," Friedman stated.

Nasdaq CEO still emphasized that the company remains committed to digital asset business development, stating:

"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."

Friedman also added that Nasdaq will be closely monitoring the market for potential regulatory events in the coming months.

Nasdaq initially announced its crypto custody project in September 2022. The firm was planning to launch an official division allowing customers to safely store Bitcoin (BTC) and Ether (ETH).

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As of March 2023, the company has been moving forward with the plan, targeting the launch of the platform by the end of July.

The news comes as major cryptocurrency firms are also working to list spot Bitcoin exchange-traded funds (ETF) on the Nasdaq exchange. The United States’ Securities and Exchange commission is currently considering two spot Bitcoin ETF proposals under Nasdaq Rule 5711.

This is a developing story, and further information will be added as it becomes available.

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