Institutional Appetite In Crypto Is Steady, Says NASDAQ

Twitter icon  •  Published vor 1 Jahr  •  Hassan Maishera

Stock exchange operator NASDAQ believes that institutional interest in crypto remains steady despite the recent incidents.

TLDR;

  • NASDAQ is expected to launch its cryptocurrency custody service in the second quarter of the year.

  • The stock exchange operator believes that institutional appetite for crypto remains steady despite the recent bear market.

Institutional Interest In Crypto Remains Steady

NASDAQ, one of the largest stock exchange operators in the world, believes that institutional interest in crypto assets remains steady despite the bear market. This statement comes as the company prepares to enter the crypto space.

The 52–year-old exchange operator is betting on crypto and is currently waiting on approval from the New York Department of Financial Services by the end of June to grant it the license to offer crypto custody to its clients. 

The company first announced its intention to enter the crypto space following the collapse of Three Arrows in July 2022. NASDAQ has increased its effort to provide crypto custody services to institutional clients even after the collapse of FTX and the slump in crypto prices. 

Matt Savarese, Nasdaq's head of strategy for digital assets, told Frank Chaparro on The Scoop podcast that;

"Trust had started to break down a little bit, and they really needed that trusted player to come in. We are on the right path. Having that foundational aspect of custody was absolutely critical, and we see institutions, they're not even backing away from the space, but they're actually looking for players like us to say, great, they know how to deliver it. They've done it for 50 years. They're innovative in a regulatory environment as well."

The crypto space has been embroiled in some controversies in recent months, starting with the collapse of the Terra project. The collapse of FTX, Three Arrows Capital, Celsius, and Signature Bank didn’t do the industry any favors.

Last month, the NYDFS ordered crypto infrastructure firm Paxos to stop issuing the stablecoin Binance USD. last week, the US SEC also sent a Wells notice to Coinbase notifying the company of investigations into several offerings. 

However, these obstacles haven’t stopped NASDAQ from planning its entry into the crypto space. Savarese said;

"The next step for us is execution and liquidity services. And then we build on our anti-financial crimes so we can monitor this throughout the ecosystem."

The stock exchange operator is hopeful that it will receive regulatory approval in the coming months. Savarese pointed out that NASDAQ is optimistic about receiving the necessary license to allow it to commence operations.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.