COIN - Nasdaq aborts its launch of crypto custody service in U.S.
2023-07-19 12:34:27 ET
Nasdaq ( NASDAQ: NDAQ ) is halting its plans to launch a cryptocurrency custody business in the U.S., CEO Adena Friedman said on the company's Q2 earnings call on Wednesday.
In September 2022, the exchange operator made a major push into crypto, having announced plans to launch a service that would offer bitcoin ( BTC-USD ) and ethereum ( ETH-USD ) custody services for institutional clients. The rollout was expected to take effect by the end of Q2.
The pullback -- a blow to U.S. institutional adoption of crypto -- comes amid heightened regulatory scrutiny of the space. The Securities and Exchange Commission, for instance, has filed a raft of lawsuits against some of crypto's biggest players, including Coinbase Global ( COIN ) and Binance.
Nasdaq ( NDAQ ), nevertheless, will continue to develop its technology to handle crypto for clients. “We remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways,” Friedman said.
She added that now is "not the right time" to enter the crypto custodian business as "the fundamental business opportunity changed over the last several months.”
Earlier, the operator of the Nasdaq stock exchange turned in stronger than expected top and bottom lines.
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Nasdaq aborts its launch of crypto custody service in U.S.