Nasdaq Halts Crypto Custody Plans, Citing the 'Shifting' Regulatory Climate in US

Nasdaq is pausing its plans to release a crypto custody business, according to CEO Adena Friedman.

"Considering the shifting business and regulatory environment in the U.S., we’ve made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue a relevant license," she said. "However, we continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry."

Nasdaq still provides the company listing for Coinbase and filed paperwork for recent bitcoin exchange-traded fund applications from BlackRock and others.

"More broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways, among them through our ongoing engagement with regulators, the delivery of comprehensive technology solutions across the trade life cycle and through our partnerships with potential ETF issuers to support tradable exchange listed products," Friedman added.

The exchange operator first revealed plans to develop the custody solution in September along with the formation of its crypto business, Nasdaq Digital Assets. It expected to launch in the second quarter of this year as it waited for approval from the New York Department of Financial Services.

(Source: CNBC)