Global securities marketplace Nasdaq has announced that it will be delaying the launch of its own cryptocurrency custody service due to regulatory risks in the United States. The decision was made during the company’s Q2 results call, where CEO Adena Friedman revealed that the shifting business and regulatory environment led to the suspension of the launch.
Friedman stated, “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.” Despite the suspension, Friedman emphasized that Nasdaq remains committed to digital asset business development, with a focus on building and delivering technology capabilities that position the company as a leading digital assets software solutions provider.
Nasdaq had initially announced its crypto custody project in September 2022, with plans to launch a division that would allow customers to securely store Bitcoin (BTC) and Ether (ETH). The company had been moving forward with the plan and was targeting a launch by the end of July 2023. However, due to the regulatory risks, the launch has been put on hold.
The decision by Nasdaq comes at a time when major cryptocurrency firms are also working towards listing spot Bitcoin exchange-traded funds (ETF) on the Nasdaq exchange. The United States Securities and Exchange Commission (SEC) is currently considering two spot Bitcoin ETF proposals under Nasdaq Rule 5711. These developments highlight the growing interest in cryptocurrencies and the efforts being made to integrate them into traditional financial markets.
Friedman also mentioned that Nasdaq will closely monitor the market for potential regulatory events in the coming months. This indicates that the company is not abandoning its plans for crypto custody services entirely and will reassess the situation as the regulatory landscape evolves.
The delay in Nasdaq’s crypto custody launch is a reminder of the challenges faced by companies operating in the digital asset space. The regulatory environment surrounding cryptocurrencies is still evolving, and companies must navigate complex and often uncertain regulations. However, Nasdaq’s commitment to digital asset business development signals a long-term belief in the potential of cryptocurrencies and their integration into the global financial industry.
As this is a developing story, further information about the launch of Nasdaq’s cryptocurrency custody service will be added as it becomes available. The company’s decision to delay the launch underscores the importance of regulatory compliance in the cryptocurrency industry and the need for companies to stay informed and adaptable in order to succeed in this rapidly growing market.