{"id":47885,"date":"2023-04-14T09:55:20","date_gmt":"2023-04-14T13:55:20","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=47885"},"modified":"2023-04-14T12:20:39","modified_gmt":"2023-04-14T16:20:39","slug":"nasdaq-to-offer-crypto-custody-by-q2-as-bank-of-america-highlights-tradfi-benefits","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/nasdaq-to-offer-crypto-custody-by-q2-as-bank-of-america-highlights-tradfi-benefits\/","title":{"rendered":"Nasdaq to Offer Crypto Custody by Q2 as Bank of America Highlights TradFi Benefits"},"content":{"rendered":"\n

Nasdaq, the second-largest stock exchange in the world by market capitalization, is planning to launch a crypto asset custody service\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> by the end of Q2 2023, according to a report by The Block. <\/p>\n\n\n\n
\"Nasdaq<\/figure>\n\n\n\n

The move is part of a broader trend of traditional finance, or TradFi<\/a>; firms entering the crypto space and offering institutional-grade products and services. <\/p>\n\n\n\n

Bank of America<\/a> (BAC), one of the largest banks in the U.S., said in a note Thursday that institutional demand is driving the development of the crypto ecosystem, despite the market correction and bankruptcies <\/use><\/svg><\/span><\/a>witnessed last year.<\/p>\n\n\n\n

Bank of America said that institutional investors remain engaged and focused on the \u201cdisruptive nature of blockchain technology over the longer term.\u201d<\/em> <\/p>\n\n\n\n

However, the bank also said that it expects crypto company collapses to slow institutional trading as they \u201creevaluate counterparty risk and ensure that custody, exchange and broker-dealers are separate entities or siloed.\u201d<\/p>\n\n\n\n

The bank argued that these collapses create a void in the crypto ecosystem that \u201ctrusted and experienced TradFi firms offering institutional-grade products may fill.\u201d <\/p>\n\n\n\n

BAC cited the U.S. Securities and Exchange Commission\u2019s (SEC) Enhanced Safeguarding Rules<\/use><\/svg><\/span><\/a>, which could limit the ability of registered investment advisers to provide custody for clients\u2019 tokens on most crypto-native exchanges, as a factor that will further drive TradFi institutions into the space.<\/p>\n\n\n\n

\n

\u201cOur view is that TradFi institutions remain the counterparty of choice,\u201d <\/p>\nanalysts Alkesh Shah and Andrew Moss wrote.<\/cite><\/blockquote>\n\n\n\n

Nasdaq is not the only TradFi firm that is expanding its crypto offerings. Other examples include Fidelity Investments, which launched<\/use><\/svg><\/span><\/a> a Bitcoin exchange-traded fund (ETF) application in March; Goldman Sachs, which reopened<\/use><\/svg><\/span><\/a> its crypto trading desk in February; and BNY Mellon<\/a>, which announced plans to offer crypto custody and administration services in February.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nasdaq, the second-largest stock exchange in the world by market capitalization, is planning to launch a crypto asset custody service by the end of Q2 2023, according to a report by The Block. The move is part of a broader trend of traditional finance, or TradFi; firms entering the crypto space and offering institutional-grade products […]<\/p>\n","protected":false},"author":44,"featured_media":47889,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,238],"tags":[6303,1546,592,11296],"class_list":["post-47885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","category-opinion","tag-crypto-news","tag-bank-of-america","tag-nasdaq","tag-tradfi"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/04\/nasdaq.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/47885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=47885"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/47885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/47889"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=47885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=47885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=47885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}