Nasdaq has suspended its plans for a crypto custody service, a development that could potentially slow the institutional embrace of digital assets in the U.S.
Nasdaq has abandoned its anticipated crypto custody service, a move prompted by the ever-evolving U.S. regulatory climate, according to the firm’s CEO, Adena Friedman.
This strategic decision, which marks a significant setback to the institutional adoption of cryptocurrencies in the U.S., was disclosed in an earnings call on Wednesday:
So Nasdaq, an entity who has dealt with every type of regulation imaginable, does not feel it can confidently get the regulatory clarity to run a *CUSTODY* service in the US.
This tells you what a joke US regulatory clarity has been and the chilling effect its causing. https://t.co/8JigtlcTr7
— Adam Cochran (adamscochran.eth) (@adamscochran) July 19, 2023
Despite this unexpected retreat, Nasdaq’s support for the digital asset sector isn’t completely going away. Friedman stated that the firm will continue to back the industry, highlighting intentions to seek partnerships with potential ETF issuers:
“We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry.”