Nasdaq Inc. said it’s halting the launch of its digital-asset custodian business in the US due to a shifting business and regulatory environment.
The exchange operator is also halting its efforts to pursue a license related to the business but will continue to build out its technological capability to handle crypto.
“We remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways,” including its partnerships with potential ETF issuers, Adena Friedman, the chief executive officer of Nasdaq, said on the second-quarter earnings call on Wednesday.
Last September, Nasdaq announced plans to offer custody services for Bitcoin and Ether for institutional investors, with plans to get approval from the New York Department of Financial Services.
The move was seen as a sign that Wall Street institutions are deepening engagement in digital assets space. It had planned to launch the service by the end of the second quarter. Most recently, Nasdaq partnered with BlackRock Inc. to apply for an exchange-traded fund that invests directly in Bitcoin.
--With assistance from Redd Brown.
