- Nasdaq has put on hold plans to release a cryptocurrency custody business, CEO Adena Friedman said during an earnings call on Wednesday.
- Meanwhile, Societe Generale’s crypto division has obtained approval from the French financial regulator to offer crypto services, including crypto assets.
- Crypto custody issues are seen by financial institutions as key to pushing the crypto industry into the mainstream in a post-FTX world.
Michael Nagle | Bloomberg | Getty Images
Nasdaq is suspending plans to release a cryptocurrency custody business, CEO Adena Friedman said during an earnings call on Wednesday.
“Given the changing business and regulatory environment in the United States, we have made the decision to suspend the launch of our U.S. digital asset custodian business and related efforts to obtain related licenses,” he said. “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.”
The Nasdaq, which still offers corporate listings for Coinbase, has filed papers for recent Bitcoin ETF applications from BlackRock and others.
“More broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a number of ways, including through our ongoing engagement with regulators, providing comprehensive technology solutions across the trading lifecycle, and partnerships with potential ETF issuers to support tradable, exchange-listed products,” added Friedman.
First exchange operator Revealed plan It plans to develop a custody solution in conjunction with the launch of its cryptocurrency business, Nasdaq Digital Assets, in September. It is expected to begin in the second quarter of this year, pending approval from the New York Financial Services Authority.
Crypto custody issues are seen by financial institutions as key to pushing the crypto industry into the mainstream in a post-FTX world. This year, efforts are underway to create a new solution that separates the trading and custody functions of cryptocurrency exchanges.
The Nasdaq suspension comes as a bit of a disappointment to those recently encouraged by the momentum surrounding BlackRock and other financial institutions’ spot Bitcoin ETF applications and the recent court ruling in the SEC case against Ripple. Investors and other market participants had hoped that some of the regulatory pressure that had weighed on the industry since the beginning of the year would be lifted and that the introduction of regulated products would bring some transparency.
Meanwhile, Societe Generale’s crypto department Approved by French financial regulator on Wednesday To provide cryptographic services, including cryptocurrency custody. This further fuels concerns that the U.S. could lose its crypto dominance as regulators continue to crack down on the industry while other jurisdictions embrace it.