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- Crypto space has lost a total valuation of more than $2 trillion
- Nasdaq has no plans to launch a digital currency exchange
- The price of bitcoin has fallen by more than 70 percent
Cryptocurrency is getting more and more attention from Nasdaq Inc.So much so that it wants to grow in the crypto industry by starting a group that will research digital currencies and provides custodial services. This means that it might soon be able to hold crypto assets for its many clients.
Nasdaq’s executive vice president, Tai Cohen, recently confirmed the company’s plans to provide crypto custody services.
Ira Auerbach, who most recently held the position of managing prime broker services at the digital currency exchange Gemini, which is based in New York and is run by Cameron and Tyler
Winklevoss will be in charge of the new organization.
Nasdaq Wants to Offer Crypto Custody Services
Auerbach elaborated in a statement that they believe that the widespread adoption of institutions will drive the subsequent revolution wave. Nasdaq is the best location to establish that trust and brand in the market, in my opinion.
The move demonstrates the continued strength of cryptocurrency. The digital currency industry has suffered like never before throughout the year. For instance, the price of bitcoin has decreased by more than 70% since reaching its all-time high of $68,000 per unit in November of last year.
Bitcoin is struggling to just hold onto a position in the low $19,000 range at the time of writing. It is an ugly and sad sight. Additionally, the cryptocurrency industry has lost more than $2 trillion in total value.
This is bad considering that earlier this year, the industry had reached a new record in that department and was valued at more than $3 trillion.
ALSO READ: China busted 13 Underground Crypto Apps
No Exchange Yet, but Maybe in the Future
Nonetheless, the fact that the sector continues to be regarded as a mainstream investing arena with numerous strengths and benefits despite falling prices is a positive aspect of this news.
Although Nasdaq does not currently have any plans to launch a digital currency exchange, he added that this could always change in the future. As a result, he advised traders to keep an eye out for any upcoming announcements.
This information comes in response to the headline that stated that Wall Street is planning to establish its very own cryptocurrency exchange that will incorporate conventional financial protocols.
Nasdaq’s first venture into digital currency custody would be this one. The move would enable the business to not only hold crypto assets for traders but also to implement strategies to safeguard these assets against fraud and theft.
Nasdaq is likely to face intense competition from Coinbase, Anchorage Labs, and Bit Go as a result of entering this new market.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
