Nasdaq, the operator of the exchange, is planning to launch its own crypto custody service. This is according to information obtained by The Block and Bloomberg from separate sources.

The second largest stock market operator in the United States will be the first to provide custody services for Bitcoin and Ethereum. Institutional investors like hedge funds are the primary target market of the services.

Nasdaq Digital Assets will be led by Ira Auerbach, the former CEO of Gemini Prime.

According to Auerbach, they anticipate widespread institutional adoption to fuel the next phase of the revolution. Further, he said that Nasdaq is the best possible venue for launching such a trusted and prestigious brand into the marketplace.

Wall Street is making an attempt to attract institutional investors despite the crypto market is in a lengthy winter. The firms are unfazed by the recent decline in the bitcoin market. This is supported by the high demand from institutional investors.

Nasdaq presently supplies crypto firms with security and surveillance capabilities, but an official there, Tal Cohen, told Bloomberg that the corporation has no plans to market bitcoin exchange services.

To quote him:

Over the last several years, there has been a rise in interest from institutional investors in trading digital assets. Nasdaq is in a prime position to facilitate this trend’s widespread acceptance and long-term expansion.

He elaborated, saying, “Custody is fundamental. With custody in place, we can go on with the creation of other solutions, the provision of execution and liquidity services, and the consideration of how to best serve emerging markets.”

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