Nasdaq’s executive vice president said they might consider launching a crypto exchange when there is clear regulation in the market.
While speaking with BloombergTV on Tuesday, the executive vice president of Nasdaq, Tal Cohen, hinted that the leading stock exchange might consider venturing into crypto exchange services in the future. However, he said some conditions must be met for such discussions to happen.
Nasdaq Will Launch a Crypto Exchange When There is Clear Regulation and Demand
Nasdaq will consider launching a crypto exchange when there is more regulatory clarity and institutional adoption in the digital currency market. “Those are discussions we are happy to have,” Cohen added.
Cohen suggests that a possible Nasdaq crypto exchange may primarily target institutional investors. In the interview, Cohen mentioned that the retail crypto market is relatively saturated, and several crypto exchanges are currently serving the retail customer base.
“I think our focus is on where the demand is and where the opportunity is. And we think it’s just massive on the custody side and the execution side,” Cohen said.
Despite the bear market, Nasdaq jumped into the crypto bandwagon in September, announcing it was launching a digital assets services business. Under the new venture, the stock exchange said it would offer crypto custody to institutional investors as the first service.
Speaking on this, Cohen said the custody service is the “foundational piece” that would enable Nasdaq to build up into other cryptocurrency services like an exchange to allow execution capabilities to facilitate the “movement and transfer of those assets.”
“Today, we are focused on custody and that’s foundational. We think if you can safely keep people’s assets, they will trust you to do everything else afterwards,” Cohen added. “So we will start with the foundational piece, we will build up from there.”
The Institutions Are Coming
Nasdaq’s entry into cryptocurrency is a significant milestone indicating a growing interest in digital assets, especially from institutions. Over the recent months, several other leading traditional financial firms have shown interest in dabbling in the crypto market, regardless of the current market situation.
In August, the world’s largest asset manager, BlackRock also jumped into crypto, announcing a new spot Bitcoin private trust, mainly targeted at institutional investors.
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