Nasdaq has announced the launch of “Nasdaq Digital Assets” citing increased demand for digital assets among institutional investors in recent years. Initially, the crypto unit will provide institutional investors with custody solutions for bitcoins and ether.
Nasdaq Establishes Crypto Unit
Nasdaq (Nasdaq: NDAQ), the world’s second-largest stock exchange, announced Tuesday the launch of a new business called “Nasdaq Digital Assets.” Initially, Nasdaq Digital Assets will develop an institutional-grade custody solution, the announcement details, adding:
Nasdaq’s custody solution will bring together the best attributes of hot and cold crypto wallets.
Tal Cohen of Nasdaq’s North American Markets told Bloomberg the group’s initial offering will be custody for Bitcoin (BTC) or ether (ETH). This service is available to institutional investors.
The new unit will be led by Ira Auerbach who previously ran the prime brokerage services for cryptocurrency exchange Gemini. Nasdaq’s offering is subject to regulatory approval in applicable jurisdictions.
Adena Friedman, president and CEO of Nasdaq, explained: “Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products.”
Cohen noted:
Institutional investors have increased their demand for digital assets in recent years. Nasdaq has the ability to increase adoption and sustain growth.
Nasdaq also announced Tuesday the expansion of its “anti-financial crime technology with new capabilities and coverage for the cryptocurrency ecosystem.”
This company details:
Nasdaq launched a complete suite of crypto specific detection capabilities through its Verafin and Surveillance product lines.
The new tools will allow the company “to effectively mitigate risks and provide continuous monitoring of anti-money laundering, fraud detection, and market abuse across traditional and digital assets, fiat and crypto, and on- and off-chain activities,” the announcement notes.
“As the world of digital assets evolves and converges with traditional finance, it is crucial to provide the necessary portfolio of technology solutions designed to safeguard participants across the financial ecosystem,” said Jamie King, head of Anti-Financial Crime at Nasdaq.
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