The CEO of Nasdaq (NDAQ), Adena Friedman, announced the decision during an earnings call on Wednesday. The company had planned to launch a cryptocurrency custody service in the second quarter of this year.The owner of the Nasdaq stock exchange had stated in March that it was putting together the infrastructure and obtaining the legal authorization required for a cryptocurrency custody service.In order to manage the custody business, the corporation had submitted an application to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company.In light of the changing economic and legal environment in the US, Nasdaq has decided to abandon these ambitions and its endeavor to obtain the required license, Friedman said.
However, she continued, the company would like to keep assisting the digital asset sector in a number of ways, including through collaborations with future ETF issuers.With regulators appearing to target cryptocurrency firms and related services, Nasdaq’s decision is a blow to institutional adoption of cryptocurrency in the United States, raising worries that these firms would leave for more accommodating jurisdictions.