Nasdaq reportedly preparing crypto custody services for institutions

The firm has reportedly created a new group focusing on digital assets and onboarded Ira Auerbach, who previously worked at Gemini, to lead the unit.

As more institutions become interested in dabbling in cryptocurrencies, multinational financial services firm Nasdaq has reportedly started preparations to offer digital asset custody services to institutional clients. 

According to a Bloomberg report, the company has created a new group focusing on digital assets and will start by offering Bitcoin (BTC) and Ether (ETH) custody services for institutions. The firm also onboarded Ira Auerbach, who previously led prime broker services at crypto exchange Gemini, as the head of its new digital assets division.

In the report, Auerbach expresses his belief that the next wave of the financial revolution will be driven by institutional adoption. According to the executive, there’s no better place than Nasdaq to bring trust to the market.

In May, Nasdaq partnered with Brazilian firm XP to create a digital asset exchange called XTAGE. Roland Chai, an executive at Nasdaq, said that the partnership with XP would bring new opportunities to investors and other companies. According to XP, the exchange is scheduled to launch in 2022.

Related: Fidelity will ‘shift’ retail customers into crypto soon — Galaxy CEO

In a recent interview with Cointelegraph, BitMEX CEO Alexander Höptner predicted that following the Ethereum Merge — when the network shifted to a proof-of-stake consensus — institutions would be more open to investing in crypto, as companies are concerned with efficiency and environmental development. “I’m absolutely sure that this will further push for institutional adoption and also mass market adoption,” he said.

Henrik Andersson, an executive at the fund manager Apollo Capital, also recently spoke to Cointelegraph. He said institutions would soon make a U-turn regarding their hands-off stance on crypto. The executive highlighted that there will be a time when people won’t want to miss out and that it will become a “career risk not to be invested.”