NASDAQ, an equity exchange operator had a major announcement to make for the institutional investors and the crypto community.
The operator has announced that it is entering the cryptocurrency custody service segment for institutional investors.
NASDAQ to Offer Crypto Custody
According to the officials at NASDAQ, they have decided that they will soon be entering the institutional cryptocurrency custody segment for institutional investors.
The reason for entering the segment is because of the growing demand coming from institutional investors.
If it were a few years back, it could be considered a shock but now, when the cryptocurrency industry is adopted all over the world, it is a common thing.
Cryptocurrency and blockchain technology has found themselves being adopted by institutions in one way or another. For NASDAQ, it is going to be in the form of offering custody services to investors in cryptocurrencies.
Over time, the product scope has continued growing bigger and better for investors. At present, cryptocurrencies have become the most demanded assets in the market.
Investors are eager to gain exposure to cryptocurrencies and operators that are handling billions of dollars coming in from investors cannot say no to their demands.
NASDAQ Continues Exploring Cryptocurrencies
This is not the first time NASDAQ has announced its latest developments in the cryptocurrency sector. In early 2022, NASDAQ announced that it had launched the Hasdex NASDAQ Crypto Index Exchange, Traded Fund.
This particular ETF had been launched for cryptocurrency investors and was an index owned by NASDAQ.
To ensure that the NASDAQ exchange did not lose focus in the cryptocurrency sector, the operator went ahead and dedicated a division to it, making it NASDAQ Digital Assets.
A statement made by Adena Friedman
Adena Friedman, who is the CEO and President of the company talked about the success of the NASDAQ Digital Assets division.
As per Friedman, they have come up with multiple solutions in order to smoothen the experiences of the users on the platform.
The investors would be able to become part of the ecosystem that offers cryptocurrency-related index solutions, cryptocurrency native anti-financial crime offerings, and digital asset exchanges.
The products would be made available for institutional investors for trading products.
Seamless and Broader Adoption is Accelerated
NASDAQ is exposed to a large number of investors from all groups. With NASDAQ launching a cryptocurrency custody service, it is clear how much demand there is for cryptocurrencies even among traditional investors.
As NASDAQ starts offering crypto custody services, the adoption rate for cryptocurrencies would accelerate at an extremely fast rate.
The adoption of cryptocurrencies through NASDAQ means stability and sustainability. Once the crypto custody is initiated by NASAQ, the entire crypto industry would realize its impact.