According to Tal Cohen, the company’s Executive Vice President, Nasdaq is likely to launch its first-ever cryptocurrency exchange once there is greater institutional adoption and regulatory clarity.
Speaking to Bloomberg on Tuesday, the top Exec’ disclosed that debuting a fully-fledged crypto exchange was a thing they were strongly considering, noting that they were impressed by the growth and demand for crypto assets. “We have an aspiration to build a world-class digital asset business, and we are starting with custody because we think we have a real advantage,” Cohen said.
However, he noted that they were focused on custody services in the meantime, stating that they were waiting for regulatory clarity for the nascent industry. “It’s the movement and transfer of those assets that we want to facilitate, and then over time, as we have more regulatory clarity and greater institutional adoption, those are discussions we are happy to have.” He added.
He said flourishing in crypto custody services was the surest way to build trust with potential and existing customers before launching a Nasdaq crypto exchange. “We think if you can safe-keep peoples assets they will trust you to do everything else afterwards. So we will start with the foundational piece and build up from there.”
The pundit went on to state they are working closely with regulators and other industry players to facilitate healthy market practices. Nasdaq was also looking at opportunities to create the right crypto-related data products which would “enhance transparency and liquidity in the interaction that customers have with that market.”
Nasdaq, the world’s second-largest stock exchange, is one of the latest big-name entrants to the crypto-verse. Last month, the exchange announced plans to offer crypto custody services for Bitcoin and Ether to its institutional clients. In announcing the move, the exchange noted that the custody of digital assets would help lay a foundation for crypto trading services in the future.
Despite the crypto market plunging from over $3 trillion to just under $1 trillion, traditional financial institutions have continued to throng into the sector as demand for digital assets soars. Recently, Wall Street firms such as Blackrock, Morgan Stanley and Goldman Sachs have launched tailor-made crypto-focused products for their clients, with Fidelity forging a partnership with Coinbase to up its crypto game.