Nasdaq, the global securities marketplace, has decided to postpone the launch of its cryptocurrency custody service that was originally planned for the end of the second quarter of 2023. The decision comes as a response to the evolving business and regulatory landscape in the United States.

During the Q2 results call, Nasdaq CEO Adena Friedman explained that the company has made the choice to halt the launch of its U.S. digital assets custodian business due to regulatory risks:

“This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license.”

Nasdaq’s Commitment to Cryptocurrencies

Although Nasdaq has suspended the launch of its own cryptocurrency custody service, the company remains committed to the development of digital asset business. CEO Adena Friedman reassured customers that Nasdaq will continue to monitor the market for potential regulatory events and leverage its technology capabilities to serve the broader global digital assets marketplace:

“We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry. This includes advancing our custody solution as a technology platform to serve the broader, global digital assets marketplace.”

The decision by Nasdaq comes at a time when several companies are resubmitting their spot Bitcoin exchange-traded funds (ETF) applications to the U.S. Securities and Exchange Commission (SEC). Many of these firms plan to list their BTC ETFs on the Nasdaq exchange. The SEC will review these applications and determine whether to approve or reject them. The most recent Bitcoin ETF application accepted by the SEC is the Valkyrie Spot Bitcoin ETF application.

FAQ

Why has Nasdaq delayed the launch of its cryptocurrency custody service?

Nasdaq has decided to postpone the launch of its cryptocurrency custody service due to the evolving business and regulatory environment in the United States.

Is Nasdaq still committed to cryptocurrencies?

Yes, despite the delay in launching its own crypto custody services, Nasdaq remains committed to the development of digital asset business and will continue to monitor the market for potential regulatory events.

What is the status of Bitcoin exchange-traded funds (ETF) applications?

Several companies are resubmitting their spot Bitcoin ETF applications to the U.S. Securities and Exchange Commission (SEC). Many of these firms plan to list their BTC ETFs on the Nasdaq exchange. The SEC will review these applications and determine whether to approve or reject them. The most recent Bitcoin ETF application accepted by the SEC is the Valkyrie Spot Bitcoin ETF application.

What other services does Nasdaq offer in the digital assets space?

In addition to the cryptocurrency custody service, Nasdaq is actively developing technology capabilities to position itself as a leading digital assets software solutions provider to the broader global industry.

Will Nasdaq revisit its cryptocurrency custody service in the future?

While there is no specific mention of revisiting the cryptocurrency custody service in the future, Nasdaq’s commitment to digital asset business development suggests that it is possible for the company to reconsider launching the service at a later time.

Summary

Nasdaq has decided to postpone the launch of its own cryptocurrency custody service due to the shifting business and regulatory environment in the United States. CEO Adena Friedman stated that the company remains committed to digital asset business development and will continue to monitor the market for potential regulatory events. The delay comes at a time when companies are resubmitting spot Bitcoin ETF applications with the SEC, with many planning to list them on the Nasdaq exchange.