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Nasdaq Chief Executive Adena Friedman (Adena Friedman) said on the company’s earnings call on Wednesday that the company is pausing plans to launch a cryptocurrency custody business.
“Considering the changes in the US business and regulatory environment, we have decided to stop launching the US digital asset custody business and related license applications,” she said. “However, we will continue to build and provide technical capabilities to make Nasdaq a broader The world’s industry-leading provider of digital asset software solutions.”
Nasdaq still offers company listings Coinbase And submitted documents for the recent Bitcoin exchange-traded fund application black stone and others.
Friedman added: “More broadly, we remain committed to supporting the growth of the digital asset ecosystem in a variety of ways, including through ongoing engagement with regulators, providing comprehensive technology solutions throughout the transaction lifecycle, and by working with potential ETF issuers to support tradable exchange-listed products.”
Exchange operator preferred revealed plan Developed custody solutions in September while simultaneously establishing its crypto business Nasdaq Digital Assets. It is expected to launch in the second quarter of this year and is currently awaiting approval from the New York Department of Financial Services.
The custody issue of cryptocurrencies is seen by institutions as key to driving the industry into the mainstream in a post-FTX world. Efforts have been made this year to create new solutions that separate the trading and custody functions of cryptocurrency exchanges.
Nasdaq’s pause is a small one for those who have recently been buoyed by the momentum of BlackRock and others filing spot bitcoin ETF applications, as well as the SEC’s court ruling in the Ripple lawsuit. disappointment. Investors and other market participants are hopeful that some of the regulatory pressure that has been placed on the industry since the start of the year has dissipated, and that allowing regulated products to enter the market may bring some clarity.
Meanwhile, Société Générale’s cryptocurrency arm received French financial regulator approves Wednesday Offers encrypted services, including encrypted escrow. This fuels concerns that the U.S. could lose its cryptocurrency edge as U.S. regulators continue to crack down on the industry while other jurisdictions embrace it.