Nasdaq abandons crypto custody plans: a blow to the industry!
Nasdaq backtracks! Its abandonment of plans for a cryptoasset custody service shakes up the industry. Nasdaq CEO Adena Friedman cites regulatory concerns in this surprise announcement. The decision could impact the future of institutional crypto adoption in the US.
A surprising withdrawal despite efforts
Nasdaq has announced that it is abandoning plans to provide a custody service for cryptoassets. CEO Adena Friedman explained at a financial results conference that the decision was prompted by current regulatory concerns in the US. Initially, Nasdaq had planned to launch the service in the second quarter of 2023. However, it has now chosen to halt these plans. This, despite efforts to secure NYDFS approval to create a limited purpose trust company overseeing the custody business.
Nasdaq’s decision could be a major blow to the institutional adoption of cryptos in the US. While the market had been looking forward with hope to the approval of a Bitcoin ETF, the decision to terminate custody plans raises concerns about a possible migration of companies in the sector to more favorable jurisdictions.
Nasdaq: an uncertain future within the crypto industry
Despite this abandonment, Nasdaq is not totally withdrawing from the crypto-asset ecosystem. The company plans to support the crypto industry through partnerships with potential ETF issuers, as well as through the provision of technologies related to crypto custody. Notably, Nasdaq is partnering BlackRock in the application to the SEC for approval of the Bitcoin ETF. This case is currently generating a great deal of interest in the market.
The regulatory environment in the US has proved particularly demanding for companies wishing to offer crypto custody services, following an SEC accounting directive. This directive imposed high hurdles on companies wishing to become involved in the custody of their customers’ cryptos. Nasdaq’s decision to abandon its plans could therefore be seen as a direct consequence of this strict regulation and the resulting uncertainties about the future of the sector in the USA.
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Je suis passionnée par les cryptomonnaies, un monde que j'ai découvert il y a peine 3 ans. Mon seul but est de vous informer de cet univers incroyable à travers mes articles.
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