Nasdaq Halting Crypto Custody Service Plans: Regulatory Hurdles and Shifting Business Landscape

In a surprising move, Nasdaq, the prominent, tech-forward U.S. stock exchange, announced it is calling off plans to launch a cryptocurrency custody service. This decision reverses earlier intentions to enter the digital asset space and marks a significant shift in Nasdaq's strategy.

Yesterday, Nasdaq CEO Adena Friedman revealed that Nasdaq (NDAQ) is dropping its plans for a crypto custody service, which was slated to go live in the second quarter of this year, during an earnings call. Nasdaq is putting its plans to release a crypto custody business on hold, the company's CEO said Wednesday. This announcement follows months of anticipation surrounding Global securities marketplace Nasdaq is halting the launch of its own cryptocurrency custody that it previously planned to roll out by the end of the second quarter of this year.

The primary reason cited for halting the initiative is the evolving regulatory environment in the United States. According to a Bloomberg report, Nasdaq, the exchange operator, has announced that it is halting the launch of its crypto custodian business in the United States due to a shifting business and regulatory climate. According to Bloomberg, Nasdaq will halt its plan to establish a crypto custody business due to the regulatory environment in the US. It will also no longer seek...

This shift raises questions about the future of crypto custody services offered by traditional financial institutions and highlights the ongoing challenges of navigating the complex and often uncertain regulatory landscape surrounding digital assets. Meanwhile, Societe General's crypto arm received approval, showcasing that opportunities remain even amidst regulatory headwinds.