Nasdaq suspends the launch of its own cryptocurrency custody

• Nasdaq had announced it will launch the crypto custody services before the end of Q2, 2023.
• The global securities marketplace has however suspended launching the services.
• Nasdaq has cited the shifting business and regulatory environment in the United States.

The launch of Nasdaq’s own cryptocurrency custody, which it had previously planned to roll out by the end of the second quarter of 2023, has been put on hold.

According to CEO Adena Friedman, during the Q2 results call, Nasdaq has postponed the launch of its digital asset custody business due to regulatory risks in the United States.

Confirming the suspension of the launch, the CEO said:

“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 still committed to cryptocurrencies

While the global securities marketplace has suspended the launch of its own crypto custody services, it has emphasized that it remains committed to digital asset business development.

While affirming to customers that Nasdaq will closely monitor the market for potential regulatory events in the coming months, Adena Friedman said:

“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 news comes as major crypto-affiliated companies resubmit their spot Bitcoin exchange-traded funds (ETF) applications with the SEC.   Almost all of the firms planning to issue BTC ETFs are working on listing them on the Nasdaq exchange. The SEC is expected to go through the resubmitted applications and determine whether to approve or reject them. The most recent Bitcoin ETF application to be accepted by the SEC is the Valkyrie Spot Bitcoin ETF application.