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- Nasdaq has indicated that it is ready to offer custody services for cryptocurrencies such as Bitcoin and Ethereum due to increased institutional demand.
- In 2022, Wall Street has taken an increasing interest in cryptocurrencies despite the market slump.
The second largest US stock exchange has announced the launch of custody services among its many products. According to a press release from the exchange operator, this move was motivated by increasing institutional interest. Though the post didn’t specify the digital assets the operator will be offering, two obvious coins have caught the attention of institutional investors in recent years – Bitcoin (BTC) and Ethereum (ETH).
For most institutional investors, the top two cryptocurrencies offer the most network security, price stability, and liquidity to act as entry-level investments in the crypto space.
Tal Cohen, Head of North American Markets at Nasdaq, expressed his confidence in the latest company, noting:
Demand from institutional investors for ownership of digital assets has increased in recent years, and the Nasdaq is well positioned to accelerate broader adoption and drive sustainable growth.
Bloomberg has since reported that while the company is open to working with domestic crypto firms, there were no immediate plans to acquire a crypto firm.
Wall Street investors are storming the crypto market
Nasdaq’s latest move is in line with the recent trend seen by traditional institutional investors. As CNF recently reported, BlackRock has partnered with Coinbase to provide institutional investors with access to the cryptocurrency market through Coinbase Prime.
In a similar partnership, US-based crypto exchange FTX recently confirmed its collaboration with GameStop. According to the stock exchange and video game company, the collaboration revolves around fostering interaction between the gaming and crypto communities.
The entry of traditional institutional investors will bring fresh money to the crypto market and boost demand. Analysts have claimed that the entry of institutional investors could lead to better regulation, higher prices, and mass adoption of cryptocurrencies.
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