Nasdaq to launch crypto custody service

US stock market operator Nasdaq is launching a digital asset custody service for institutional investors which aims to cash in on the demand from institutional crypto investors.

Nasdaq Digital Assets will initially offer bitcoin and ether custody services to financial institutions with a custody solution that will incorporate liquidity and execution services to address industry challenges around connectivity, availability, and efficiency.

The offering will bring together the best attributes of hot and cold crypto wallets providing a high degree of accessibility and scalability without compromising security. The new service still requires regulatory approval.

Tal Cohen, EVP and Head, North American Markets, Nasdaq, said, “Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth.

He further added, “With our trusted brand and strong track record as a technology provider for the global capital markets, Nasdaq is uniquely placed to address industry pain points by improving liquidity, scalability, and resiliency, with the goal to engender greater trust and confidence in the digital assets ecosystem.”