On September 20, 2022, Nasdaq, a large financial services provider, stated that it would establish a new cryptocurrency-centric business unit. Nasdaq Digital Assets aims to streamline the process for institutional investors. The new initiative will encourage large financial institutions to engage in the rapidly expanding cryptocurrency markets. 

Nasdaq Rivals Anchorage Digital and Coinbase

Nasdaq Inc. intends to make a substantial foray into the cryptocurrency market. The stock exchange organization is motivated to profit from the rising interest of affluent investors in the sector. Nasdaq would be in direct competition with companies like Anchorage Digital and Coinbase. 

The launch of a new marketplace for digital assets by Nasdaq demonstrates the exchange’s dedication to attracting more participants. Through this, Nasdaq will provide dependable solutions for custody, liquidity, and integrity to participants in the market for digital assets.

Tal Cohen, the company’s senior vice president and head of the North American markets, made some statements regarding the development. He said the new Digital Assets division would focus on providing custody services for institutional investors concerning Bitcoin and Ethereum.

Nasdaq claims it has no plans to establish a cryptocurrency trading platform at this time. But it will consider its choices in light of emerging norms and market developments.

Hashdex Is a Partner of Nasdaq

Nasdaq and Hashdex, a company specializing in asset management, began working together in February 2021. The partnership aimed to provide a digital assets education program for financial advisors. The two companies first released the Nasdaq Crypto Index Exchange Traded Fund in March 2022. 

The launch aims to educate financial advisors about the ecosystem of digital assets, including investment options, laws, and taxes, among other topics.

Nasdaq has just announced that it would open a cryptocurrency and Bitcoin exchange in South America in conjunction with XP. XP is Brazil’s most significant trading business. The action by Nasdaq demonstrates the growing acceptance of cryptocurrencies on Wall Street.

Creating A Digital Asset Crime Prevention System

Meanwhile, Nasdaq has disclosed that it intends to expand its crypto-specific detection capabilities. The new expansion will be as part of its ongoing effort to combat financial crime via the growth of its anti-crime technologies.

The stock exchange firm notes that in 2021, cryptocurrency-based criminal activity reached $8.6 billion, up 30% from the year before. The firm claims that digital fraud is a significant problem that needs tackling if the full potential of digital assets is to come to fruition.

Ira Auerbach will lead Nasdaq’s new Digital Assets team as its head of department. Auerbach was previously in charge of prime broker operations at Gemini, a cryptocurrency exchange. Meanwhile, Nasdaq’s institutional custody service is still waiting for regulatory clearance, according to a source.

According to a Bloomberg study, Auerbach predicts widespread institutional adoption will fuel the next round of financial innovation. The company said that Nasdaq is the ideal venue for establishing credibility in the market.