In March, Nasdaq Stock Exchange senior vice president of digital assets Ira Auerbach said the company was in the process of building the technical infrastructure to provide storage for digital assets. To that end, Nasdaq sought authorization from the New York Department of Financial Services (NYDFS) to create an independent regulated trust company to service the new business line.
However, on Wednesday, July 19, Nasdaq OMX Group CEO Adena Friedman said the company was abandoning its plans to launch a digital asset custody business in the U.S., citing the changing business and regulatory environment. Friedman clarified: despite the cessation of efforts to obtain a custodial license, the exchange will continue to build out its technological capabilities to handle cryptocurrency.
“We remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways, including partnerships with potential ETF issuers,” Adena Friedman said.
The Nasdaq Stock Market has been unsuccessfully
trying to get the U.S. Securities and Exchange Commission (SEC) to approve an application to launch a spot bitcoin ETF from BlackRock. The regulator rejected the initial request.