The Nasdaq has announced that its plans to create a company specializing in the custody of cryptocurrencies have been abandoned. It is therefore a blow to adoption by institutional investors, justified by the regulatory uncertainty that reigns in the United States.
The Nasdaq revises its ambitions related to cryptocurrencies downwards
In September 2022, the Nasdaq company, the head of the second largest stock exchange in the United States, made the news by announcing its intention to enter into cryptocurrency custody services. Less than a year later, plans for the creation of this company are now shelvedas well as obtaining the necessary license requested from the New York Department of Financial Services.
The regulatory uncertainty that is sorely lacking in the United States today is the main reason cited by Adena FriedmanCEO of the company:
“We like to be able to operate in a fairly well-regulated environment and a sufficiently clear regulatory framework, and right now that regulatory framework is changing. We have therefore decided to stop these efforts for the time being and focus only on the technology sector and listings. »
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A blow to the adoption of institutional investors
Given the importance of the Nasdaq in traditional finance, the success of such a project could have been particularly beneficial for the cryptocurrency industry. This reversal of the situation could then temporarily curb adoption by institutional investors.
Despite everything, the company believes that this decision will have a “modest financial impact“. Moreover, this does not call into question the Nasdaq projects in this industryand the group remainscommitted to supporting the evolution of the digital asset ecosystem in various ways“.
Indeed, the company stands alongside BlackRock in his registration application for his spot ETF on Bitcoin (BTC).
Since the beginning of the year, the regulatory vagueness maintained in the United States has notably caused the cessation of the crypto trading activities of Jane Street and Jump Cypto, as well as the bankruptcy of Bittrex US.
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Source: Bloomberg
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