The financial world is witnessing a pivotal shift as traditional market giants begin to embrace digital assets. Nasdaq Inc., the operator of the second-largest stock exchange globally, has officially launched its first major foray into the cryptocurrency industry—starting with institutional-grade digital asset custody services. This strategic move underscores growing demand from institutional investors for secure and regulated access to cryptocurrencies like Bitcoin and Ethereum.
With deep expertise in financial infrastructure, regulatory compliance, and market technology, Nasdaq is positioning itself as a trusted bridge between traditional finance and the evolving digital asset ecosystem.
👉 Discover how financial institutions are shaping the future of crypto access.
Building Trust Through Institutional Custody
At the heart of Nasdaq’s initial strategy is the launch of a dedicated digital asset custody solution for institutional clients. According to Tal Cohen, Executive Vice President and Head of North America at Nasdaq, the company aims to offer secure custody for Bitcoin and Ethereum—two of the most widely held cryptocurrencies by institutional investors.
Custody—the secure storage and management of digital assets—is widely recognized as a foundational requirement before broader financial services such as trading, lending, or derivatives can be safely offered. By entering this space first, Nasdaq is laying the groundwork for future expansion into execution platforms, liquidity solutions, and market infrastructure tailored for digital assets.
To lead this initiative, Nasdaq has appointed Ira Auerbach, a veteran in crypto finance who previously oversaw the prime brokerage business at Gemini exchange. His appointment signals Nasdaq’s serious commitment to building a robust, compliance-first digital asset division.
Currently, Nasdaq is awaiting approval from the New York State Department of Financial Services (NYDFS) to operate as a licensed custodian. Once authorized, it will join a competitive landscape that includes established players like Coinbase, Anchorage Digital, and BitGo, as well as traditional financial institutions such as BNY Mellon and State Street Corporation.
“Custody is foundational. Once we have that in place, we can start building other solutions—execution services, liquidity offerings—and think about how to support this new market,” said Tal Cohen in a Bloomberg interview.
No Immediate Plans for a Crypto Exchange
While speculation has swirled about whether Nasdaq might launch its own cryptocurrency exchange, Cohen clarified that there are no immediate plans to do so. Instead, the company will closely monitor regulatory developments and competitive dynamics before making strategic decisions.
This cautious approach reflects both the complexity of the crypto regulatory environment and Nasdaq’s long-standing reputation for operating within well-defined legal frameworks. However, the door remains open: depending on market evolution and regulatory clarity, Nasdaq could eventually expand into trading or clearing services.
Other major financial institutions are already moving quickly. BlackRock, the world’s largest asset manager, recently partnered with Coinbase to enable easier Bitcoin exposure for its clients. Meanwhile, EDX Markets—a new crypto exchange backed by Charles Schwab, Fidelity Digital Assets, Citadel Securities, and Virtu Financial—is set to launch operations this year.
These developments highlight a broader trend: Wall Street is not just watching crypto—it’s actively building within it.
Navigating Regulation with Confidence
One of Nasdaq’s key advantages in entering the crypto space is its extensive experience navigating complex regulatory environments. As a global exchange operator, it has long adhered to strict compliance standards, anti-money laundering (AML) protocols, and market surveillance requirements.
Rather than viewing regulation as a barrier, Nasdaq sees it as an opportunity to bring trust and transparency to a sector often criticized for opacity and risk.
“We know how to operate within a regulatory framework,” Cohen emphasized. “We continue to innovate within the rules of the road. Embracing regulation when it arrives is what we should do—and institutional investors want us to operate within that structure.”
This philosophy aligns perfectly with the needs of institutional clients, who prioritize security, auditability, and compliance over speculative gains.
Nasdaq has also been providing its proprietary market surveillance and trading technologies to crypto-native platforms. For example, it has supplied matching engine technology to exchanges like Bitstamp, helping them improve trade execution and system reliability.
Expanding the Digital Asset Ecosystem
Under Ira Auerbach’s leadership, the newly formed Nasdaq Digital Assets team is expected to grow to around 40 professionals by year-end. While acquisitions are not on the immediate horizon, the company remains open to strategic partnerships with crypto-native firms that can accelerate innovation.
Beyond custody, Nasdaq is enhancing its suite of compliance tools designed for digital asset firms. Through its Verafin and Suredor platforms—acquired as part of its broader anti-financial crime technology portfolio—Nasdaq offers advanced software that helps banks and trading firms detect and report suspicious activities such as money laundering, fraud, and market manipulation.
These tools are increasingly relevant as regulators demand greater accountability from crypto businesses.
“We believe the next wave of revolution will be driven by large-scale institutional adoption,” Auerbach said. “I can’t think of a better place than Nasdaq to bring trust and brand credibility to this market.”
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👉 Explore how trusted financial platforms are integrating crypto services securely.
Frequently Asked Questions (FAQ)
Q: Is Nasdaq launching its own cryptocurrency exchange?
A: Not at this time. Nasdaq has stated it has no immediate plans to launch a crypto exchange but will evaluate opportunities based on regulatory developments and market demand.
Q: What cryptocurrencies will Nasdaq support for custody?
A: Initially, Nasdaq plans to offer custody services for Bitcoin (BTC) and Ethereum (ETH), the two most widely adopted digital assets among institutional investors.
Q: How does Nasdaq’s custody service differ from others?
A: Nasdaq brings decades of experience in regulated financial markets, advanced security protocols, and compliance infrastructure—offering institutions a trusted name in a space where credibility matters.
Q: When will Nasdaq’s custody service be available?
A: The service is pending approval from the New York State Department of Financial Services. No official launch date has been announced yet.
Q: Why is custody important for institutional crypto adoption?
A: Custody ensures secure storage and management of digital assets, addressing one of the biggest concerns for institutions: asset protection against theft, fraud, or loss.
Q: Can individual retail investors use Nasdaq’s crypto services?
A: Not currently. The initial focus is exclusively on institutional clients such as asset managers, hedge funds, and financial intermediaries.
👉 Learn how institutional-grade security is transforming crypto access today.
Final Thoughts
Nasdaq’s entry into the cryptocurrency space marks a significant milestone in the maturation of digital assets. By starting with regulated custody services, leveraging proven compliance tools, and assembling seasoned leadership, Nasdaq is building a foundation that prioritizes trust, security, and long-term sustainability.
As more traditional financial players integrate crypto into their offerings, the line between legacy finance and decentralized finance continues to blur—ushering in a new era of institutional adoption powered by innovation and oversight.
For investors and institutions alike, the message is clear: the future of finance is digital—and it’s being built by those who understand both markets and regulation.