Despite the onset of crypto winter and the negative macro conditions, major players in technology and finance never seem to lose any interest in the nascent industry.
In the latest report published by Bloomberg, Nasdaq, the world’s second-largest stock exchange, is working to launch crypto custody services for institutional investors.
The news source reported that the multinational finance giant has established a new, dedicated digital asset group to help explore potential offerings of the future.
NASDAQ Goes Crypto
The initial cryptocurrency custody services are focused solely at Bitcoin (BTC) and Ether (ETH) offerings for large institutional investors.
To foster the new service, called Nasdaq Digital Assets, Nasdaq has also appointed Ira Auerbach, a former Gemini executive as the head of its new digital assets.
Auerbach has an extensive background in broker services given that he previously worked as Global Head of Gemini Prime at the well-known crypto exchange.
The US-based stock firm is betting on the growth of digital assets, hoping to profit from the growing interest in the cryptocurrency space. Nasdaq plans to expand the team for this division to 40 people by the end of 2022.
In addition to the custody move, Nasdaq has applied for a registration service for digital asset deposits with the New York Department of Finance Services, which is currently waiting for acceptance.
If its application is approved, Nasdaq will undoubtedly become a competitor to companies like Coinbase and Anchorage Digital.
2022 has been a challenging year for the cryptocurrency industry, the value of Bitcoin, Ethereum, and the vast majority of other coins dropped by more than 70% in comparison to their all-time high.
It is not the first time that we have witnessed Wall Street forces showing interest in bitcoin.
The question that remains, though, is how far their moves can potentially extend. Last month, Blackrock, the largest asset management organization in the world, collaborated with Coinbase to develop the Bitcoin entrusted fund. The goal of the fund is to make it easier for consumers with high incomes to access cryptocurrencies.
As a result of the fact that corporations frequently use depository services to hold personal locks or retain money on exchanges in order to make contact with the cryptocurrency market, new opportunities have arisen for businesses such as Nasdaq.
Crypto As Unavoidable Future Asset?
The world is still far from cryptocurrency mass adoption but it does not mean there’s no preparation generally put in place, step by step.
The chase after digital assets of big financial institutions and tech behemoths, or the increasing rush into the regulation of SEC, states evidently show that cryptocurrency is a big hack away from collapse.
Several bad events occurred in the crypto business at the start of this year. Among concerns is the bankruptcy of some industry companies, scams, and a drop in asset prices that has severely impacted small consumers.
These events have sparked a surge of skepticism that, in time, will be a barrier to the widespread acceptance of cryptocurrencies. Authorities all across the world are aiming for tighter regulation and better consumer protection.
However, the process could not be accelerated. That explains why global regulators are still striving to bring these proposals together and create a formal, national framework.
The significance of starting this process with complete information is the same as providing improved security for crypto users.
However, restrictions and adoption by high-profile organizations will eventually lead to an exponential increase in the rate of adoption worldwide. It’s simply a matter of time.
The company manager placed a special emphasis on consumer protection in growing areas. People do not necessarily trust their prior and current banking systems in these locations. Furthermore, this is an opportunity for the crypto business to capitalize on.
Regulation is becoming unavoidable as the European ecosystem develops at a breakneck pace. In June, EU legislators agreed to implement the Market in Crypto-assets (MiCA) as a regulatory framework for stablecoins and crypto asset providers.
Companies in the sector are prepared to comply with the MiCA law. The law will undoubtedly aid in the development of talents and the competitiveness of its actors.
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