Nasdaq reports that institutional interest in crypto is stable as it considers a move into custody and trading
The 52-year-old exchange operator awaits clearance from the New York Department of Financial Services, which is anticipated by the end of June, to provide custody services to customers.
Nasdaq revealed its plan to enter the cryptocurrency market in July, after the demise of Three Arrows, and has been moving forward despite declining crypto values.
Nasdaq expects its reputation to help them earn a prominent position in the cryptocurrency industry. The 52-year-old exchange operator is awaiting clearance from the New York Department of Financial Services by the end of June to provide customer custody services. Nasdaq stated its desire to enter the cryptocurrency market in July, after the failure of Three Arrows, and has continued to do so despite the decline in cryptocurrency values and the subsequent losses of FTX, Voyager Digital, Celsius Network, and others.
Matt Savarese, Nasdaq’s director of strategy for digital assets, told Frank Chaparro on a Paris-recorded episode of The Scoop, “Trust had begun to degrade a bit, and they desperately needed a trusted player to step in.”
The instability prompted the corporation to reconsider its plan to enter the market. Savarese said, “We’re on the right track.” “Having that basic part of custody was extremely crucial. We see institutions, they’re not even pulling away from the area, but they’re actively seeking companies like us to say, wonderful, they know how to provide it. They have done this for fifty years. They are also inventive in the regulatory context.”
It takes a lot of work to get approval from authorities to operate in cryptocurrency. Consistently, U.S. authorities have cracked down on crypto-related businesses. In February, the NYDFS ordered the crypto infrastructure company Paxos to cease producing the stablecoin Binance USD. In addition, the U.S. Securities and Exchange Commission served Coinbase a Wells notice last week informing the firm of pending investigations into several offerings.
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