Nasdaq Suspends Launch of Crypto Custody Service

Nasdaq Halts Crypto Custody Launch Amid Regulatory Risks

Global securities marketplace Nasdaq has suspended the launch of its cryptocurrency custody plans, which it had previously planned to roll out by the end of the second quarter of 2023. CEO Adena Friedman announced during the firm’s Q2 results call that the launch was halted due to regulatory risks in the United States.

“Considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license,” Friedman stated.

Despite the suspension, the Nasdaq CEO emphasized that the company remains committed to digital asset business development, including platforms such as Crypto.com, Robinhood Crypto, and the newest crypto offerings from Polymath, ON, Russia, QNT, RenQ, and Songbird Crypto.

Cryptocurrency Developments on Nasdaq

Friedman also noted that Nasdaq will be closely monitoring the market for any potential regulatory events in the coming months.

In September 2022, Nasdaq first revealed its crypto custody project, which would enable customers to securely store Bitcoin (BTC) and Ether (ETH). By March 2023, the company had been making progress towards the launch of the service, with a target date of the end of July.

The news comes as major crypto firms are also attempting to list spot Bitcoin exchange-traded funds (ETF) on Nasdaq, with the United States Securities and Exchange Commission currently evaluating two spot Bitcoin ETF proposals under Nasdaq Rule 5711.

Meanwhile, crypto platforms such as Robinhood Crypto, Polymath Crypto, and Songbird Crypto have become increasingly popular, while Russia and Qatar have both announced plans to launch their own cryptocurrencies.