Nasdaq Eyeing Q2 2023 Release For Bitcoin And Crypto Custody Platform
Fidelity and BNY Mellon are joining the exchange giant in pursuing their own cryptocurrency custody platform.
According to reports, Nasdaq, an American stock market based in New York City is looking at Q2 2023 to release its custody services for Bitcoins and other cryptocurrencies.
Ira Auerbach, Senior Vice President and Head Nasdaq Digital Assets, stated that Nasdaq is ‘continuing to push forward to get all of the necessary technical infrastructures and regulatory approvals in order.
This report discusses an infrastructure that could look similar to Fidelity Digital Assets’ operation. The custody service would be the first step towards cryptocurrency and bitcoin trading on Nasdaq.
Bloomberg reports that Nasdaq applied to New York Department of Financial Services to obtain a limited-purpose trust charter. This would allow it to oversee the new business.
The launch comes just as many major cryptocurrency companies have fallen, amid increasing regulatory tension. The goal seems to be to offer customers without a platform, a well-regulated, trusted American service for bitcoin.
Many of the problems surrounding exchanges are caused by third-party risks. A custodian holds bitcoin for customers. You can interact with bitcoin most securely by self-custodying it with your wallet.
Trading platforms offer the convenience of custodianship but it is important to remember that these tradeoffs are not the same as traditional bitcoin self-custody.