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Nasdaq is preparing to launch its crypto custody services by the end of the second quarter. The exchange first announced its plans for a digital assets business last year. Other traditional financial institutions, like BNY Mellon and Fidelity, also offer crypto custody.
Nasdaq is set to join the ranks of traditional financial institutions such as Fidelity and BNY Mellon in offering crypto custody. The new digital offering will be headed by Ira Auerbach, who joins the company from Gemini, which was caught in the crosshairs of the FTX collapse. Auerbach was the Global Head of Gemini Prime, which was the company’s prime brokerage service.
Cryptocurrencies are continuing to gain popularity, with more and more people investing in them. Meanwhile, some traditional financial institutions are doubling down on their crypto offerings. Case in point, Fidelity’s recent launch of a retail cryptocurrency trading platform.
Last year, Nasdaq said its vision for its digital assets business was driven by a desire to “advance and help facilitate broader institutional participation in digital assets” and “play a central role in combatting the rising threat of financial crime” in crypto. This is a clear indication that traditional financial institutions are taking cryptocurrencies seriously and are looking to expand their offerings in this area.
Nasdaq Expands Anti-Financial Crime Technology to Include Digital Assets
Nasdaq announced on Wednesday that it is expanding its anti-financial crime technology to include digital assets. The company’s Verafin and Surveillance product offerings will now include “crypto-specific detection capabilities” in order to mitigate risks and provide continuous monitoring of anti-money laundering, fraud detection, and market abuse.
According to Nasdaq, crypto-based money laundering amounted to $8.6 billion in 2021. And with institutional adoption of crypto on the rise, it’s more important than ever to have robust anti-financial crime measures in place. Nasdaq’s expanded technology will help ensure that digital assets are being used for legitimate purposes only.