Nasdaq abandons offering cryptocurrency custody service

By Crypto4you23 | Cryptoanswers22 | 20 Jul 2023

The company pointed out changes in the regulatory landscape, but stated that it will maintain current trading services for digital assets.

Nasdaq took a step back concerning digital assets and aborted the launch of a cryptocurrency custody service that was scheduled to be released in the US.

Among the reasons cited by the company during a results conference on Wednesday (19) are changes in the regulatory and business environment of the sector.

The license application to the New York Department of Financial Services (NYDFS) to establish a limited purpose trust company that would oversee the custody business was also suspended.

However, the company stated that it will continue to develop technology for cryptocurrencies. Currently, it offers compliance and digital asset trading software used by brokers like Xtage from XP Investimentos and Digitra.

We remain committed to supporting the evolution of the digital assets ecosystem in various ways," including partnerships with potential ETF issuers, said Adena Friedman, CEO of Nasdaq.

Nasdaq also stated that the decision to discontinue the custody business in the US will have a "modest financial impact," contributing to a reduction in their full-year expense growth guidance.

Regulatory pressure Nasdaq backed off amid an increasing crackdown by regulators aiming to isolate the risks of cryptocurrencies from the US financial system."

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