Nasdaq’s Crypto Unit is Established — There is Increased Demand for Digital Assets among Institutional Investors

Nasdaq announced the launch "Nasdaq Digital Assets", citing the increased demand for digital assets by institutional investors over recent years. Initially, the new crypto unit will provide custody solutions for bitcoins and ether to institutional investors.

Nasdaq Establishes Crypto Unit

Nasdaq (Nasdaq, NDAQ), world's second largest stock exchange, has announced Tuesday that it will launch a new business called "Nasdaq Digital Assets." The announcement details:

Nasdaq's custody solution will combine the best features of both hot and cold crypto wallets.

Tal Cohen, the head of North American Markets for Nasdaq, stated to Bloomberg that the new crypto group would initially offer custody services in bitcoin (BTC), and ether (ETH), to institutional investors.

The new unit will be led by Ira Auerbach who previously ran prime broker services at cryptocurrency exchange Gemini. The offering of Nasdaq is subject to regulatory approval in the applicable jurisdictions.

Adena Friedman is the president and CEO at Nasdaq. She explained that "Nasdaq Digital Assets builds on the successful solutions we've introduced in recent years to service the digital assets ecosystem. This includes marketplace technology for digital asset exchanging, crypto-native antifinancial crime offering, and crypto-related index solution for tradable goods.

Cohen noted:

Institutional investors have increased their demand for digital assets in recent years. Nasdaq is well placed to increase adoption and drive sustainable growth.

Tuesday's announcement by Nasdaq included the expansion of its anti-financial criminal technology, with new capabilities and coverage to the cryptocurrency ecosystem.

This company details:

Nasdaq's Verafin and Surveillance product lines have launched a comprehensive range of crypto-specific detection capabilities.

The company will be able to "effectively mitigate risks and provide continuous surveillance of anti-money laundering and fraud detection across traditional and digital assets fiat and crypto, as well as on- and off-chain activity," according to the announcement.

Jamie King, Head of Anti-Financial Crime at Nasdaq, stated that "As the digital world evolves and converges into traditional finance, it's crucial to provide the required portfolio of technology solutions designed for safeguarding participants across the financial eco-system."

What are your thoughts on Nasdaq creating a crypto unit Please leave your comments below.


By: Kevin Helms
Title: Nasdaq Establishes Crypto Unit — Sees Increased Demand for Digital Assets Among Institutional Investors
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Published Date: Tue, 20 Sep 2022 17:30:46 +0000

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