Nasdaq has abandoned plans for a crypto custody service, according to CEO Adena Friedman.
Nasdaq Halts Plans for Crypto Custody Service Due to US regulation
Nasdaq has abandoned plans for a crypto custody service, according to CEO Adena Friedman.
Nasdaq has decided to put a hold on plans for the required license, citing the "shifting business and regulatory environment in the U.S." The service was initially scheduled to start in Q2 2023.
The company will continue to assist the digital asset market in various ways, such as by working with future ETF issuers and by offering technology for crypto custody. BlackRock's spot Bitcoin ETF proposal, which was submitted last month, called for Nasdaq to join with it as the listing exchange.
This decision by Nasdaq is a setback for institutional adoption of cryptocurrency in the United States, where regulators appear to be pursuing crypto businesses and related services, raising worries that such firms may leave for more welcoming jurisdictions.
Publicly listed companies must record their obligations as liabilities on their own balance sheets in order to engage in crypto custody, which is a difficult barrier set up by the US Securities and Exchange Commission.
