NASDAQ, one of the world’s largest stock exchanges, is set to launch its crypto custody services by the end of the second quarter of 2023. The move is seen as a major step towards bringing cryptocurrency into the mainstream financial world.
According to sources, the new service will allow institutional investors to securely store their digital assets in a NASDAQ-operated custody solution. This will be a big boost for institutional investors who have been hesitant to invest in cryptocurrencies due to concerns over security and regulatory compliance.
The new service will be provided through a partnership with Fidelity Digital Assets, a subsidiary of Fidelity Investments. Fidelity Digital Assets will provide the technology and expertise needed to ensure that the NASDAQ’s crypto custody solution is secure and compliant with regulatory requirements.
The move by NASDAQ is seen as a response to the growing demand for crypto custody services among institutional investors. As the value of cryptocurrencies continues to rise, more and more institutional investors are looking for ways to safely invest in these assets.
The new service will also help to increase the liquidity of cryptocurrencies, as it will provide a more secure and regulated environment for trading. This is likely to lead to an increase in the number of institutional investors investing in cryptocurrencies, which could in turn drive up the value of these assets.
The launch of NASDAQ’s crypto custody services is also a sign of the increasing acceptance of cryptocurrencies in the mainstream financial world. Major financial institutions such as JPMorgan and Goldman Sachs have already started to offer crypto trading services to their clients. This trend is likely to continue as more and more investors see the potential benefits of investing in cryptocurrencies.
However, there are still concerns about the security and regulation of cryptocurrencies. The crypto market is notoriously volatile, and the lack of regulatory oversight has made it an attractive target for hackers and fraudsters. There is also a risk that regulatory crackdowns could lead to a sharp drop in the value of cryptocurrencies.
Despite these risks, many investors believe that cryptocurrencies have the potential to provide strong returns over the long term. With the launch of NASDAQ’s crypto custody services, institutional investors will have more options for investing in these assets, which could help to drive their value even higher.
In conclusion, the launch of NASDAQ’s crypto custody services is a major development for the crypto market. It is a sign of the increasing acceptance of cryptocurrencies in the mainstream financial world, and it could help to drive up the value of these assets over the long term. However, investors should be aware of the risks involved in investing in cryptocurrencies, and should seek professional advice before making any investment decisions.