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Nasdaq is pausing its plans to launch a crypto custody business, CEO Adena Friedman mentioned on the corporate’s earnings name Wednesday.
“Considering the shifting business and regulatory environment in the US, we’ve made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue a relevant license,” she mentioned. “However, we continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry.”
Nasdaq nonetheless gives the corporate itemizing for Coinbase and filed the paperwork for latest bitcoin ETF functions from BlackRock and others.
“More broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways, among them through our ongoing engagement with regulators, the delivery of comprehensive technology solutions across the trade lifecycle and through our partnerships with potential ETF issuers to support tradable exchange listed products,” Friedman added.
The alternate operator first revealed plans to develop the custody resolution in September together with the formation of its crypto business, Nasdaq Digital Assets. It anticipated to launch within the second quarter of this 12 months because it waited for approval from the New York Department of Financial Services.
Crypto’s custody drawback is seen amongst establishments as the important thing to pushing the trade into the mainstream in a post-FTX world. Efforts have been underway this 12 months to create new options that decouple the buying and selling and custody features of crypto exchanges.
The pause by Nasdaq comes as a minor disappointment for many who have been inspired recently by the momentum round spot bitcoin ETF filings by BlackRock and different establishments, in addition to the latest court docket ruling within the SEC’s lawsuit towards Ripple. Investors and different market members had been hoping among the regulatory stress that had weighed on the trade because the begin of the 12 months had been de-risked, and that permitting regulated merchandise into the market would possibly convey some readability.
Meanwhile, Societe General’s crypto arm acquired approval Wednesday from France’s monetary regulator to supply crypto companies, together with crypto custody. This provides to worries that the U.S. might lose its crypto edge as its regulators proceed to crack down on the trade whereas different jurisdictions embrace it.
Source: www.cnbc.com