The second-biggest global stock exchange, Nasdaq, has announced its interest in opening a crypto custodian branch. As a result, institutional investors can hold both Bitcoin and Ethereum on the giant stock brokerage firm platform.
Nasdaq Sets To Venture Into The Cryptocurrency Space
Since the Blockchain industry came to the limelight in 2021, the demands for crypto-related services and products have skyrocketed. Hence, many startups and enterprises have massively adopted evolving technology to satisfy public needs.
Aligning with the popular demands, Nasdaq recently revealed its plans to venture into the fast-rising blockchain technology industry. The giant stock firm would reportedly offer custodian services to ETH and BTC institutional investors at first, then others later.
According to the report, Ira Auerbach, an alumnus of Gemini, would head Nasdaq’s new crypto branch. In addition, the exchange plans to employ a team of about 40 tech experts in the unit by 2023.
According to reports, Nasdaq has applied for an operating license from the financial regulators in New York. Once it receives the operational approval, Nasdaq would be able to operate like Binance, Coinbase, and other giant exchanges that offer crypto-related services in America.
Furthermore, it would join the league of other giant traditional financial firms like BNY Mellon, who had earlier taken advantage of the booming crypto industry.
Institutional Investors Continues To Troop Into The Crypto Space
Amidst the bearish crypto market, where many crypto assets are losing massive price value, many Wall Street firms continue to join the crypto space.
They show intense interest in crypto as they claim that many institutional investors are demanding massively crypto derivative products. Recently, BlackRock, one of the giant asset managers globally, started offering BTC trust funds to wealthy customers with the aid of Coinbase.
Meanwhile, institutional investors need to invest in regulated crypto products to take full advantage of the booming space. And to do that, they need the service of crypto custodians like Binance and Coinbase rather than private wallet providers.
Consequently, the need for crypto custody providers skyrocketed, which gave Nasdaq and others a market opportunity. Meanwhile, during the bullish crypto run in 2017, many adopters believed that institutional investors would invest in the industry massively in the future.
The reality of their beliefs manifested in 2021 when giant institutions ventured into the industry. Then, it became evident that many organizations and firms had been keeping tabs on cryptocurrency development for a long. Furthermore, Nasdaq’s movement to launch a crypto service provider branch proves that institutions are attracted to crypto.