Nasdaq is expecting that its solid reputation will help it carve out a significant position for itself in the cryptosphere.
By the end of June, the 52-year-old exchange operator hopes to start providing customer custody after receiving approval from the New York Department of Financial Services. Following the failure of Three Arrows in July, Nasdaq declared its ambition to enter the cryptocurrency market. It has continued to do so despite the recent decline in cryptocurrency values and the subsequent failures of FTX, Voyager Digital, Celsius Network, and other companies.
On the The Scoop podcast, which was taped in Paris, Matt Savarese, Nasdaq’s head of strategy for digital assets, said, “Trust had started to break down a little bit and they really needed that trusted player to come in.”
The upheaval forced the corporation to reconsider its choice to occupy the premises. We are headed in the right direction, Savarese declared. “Having that fundamental part of custody was really essential, and we see institutions seeking for players like us to say, “Great, we know how to offer it,” rather than even leaving the market. It has been done for 50 years. They are also creative in a regulatory setting.”
It’s not an easy moment to ask officials for authorization to work in the cryptocurrency industry. U.S. agencies have routinely taken action against businesses involved with cryptocurrency. The NYDFS ordered crypto infrastructure company Paxos to stop issuing the stablecoin Binance USD in February, among other moves. Meanwhile, the U.S. Securities and Exchange Commission informed Coinbase of investigations into a number of offers by a Written notice last week.
Execution and liquidity services are the next stage for us, Savarese said. “And then we expand on our efforts to combat financial crimes so that we can keep an eye on this across the ecosystem.”
With regard to getting regulatory approval in the first half of the year, Nasdaq is “hopeful.” Savarese stated, “We are optimistic,” to which Chaparro replied, “NYDFS is not currently a fan of crypto, but I will put a spoon under my pillow for you.”
