Nasdaq launches new digital assets business

Nasdaq launched a new business last week called Nasdaq Digital Assets, which will power the digital asset ecosystem and help facilitate broader institutional participation in digital assets.

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“Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” Adena Friedman, president and CEO of Nasdaq, said. “The technology that underpins the digital asset ecosystem has the potential to transform markets over the long-term. To deliver on that opportunity, our focus will be to provide institutional-grade solutions that bring greater liquidity, integrity, and transparency to support the evolution.”

Nasdaq Digital Assets will develop an advanced custody solution that will incorporate liquidity and execution services to address connectivity, availability, and efficiency challenges. It will bring together the best attributes of hot and cold crypto wallets through an innovative technology offering. The offering is subject to regulatory approval in applicable jurisdictions.

“Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth,” Tal Cohen, head of North American Markets at Nasdaq, said. “With our trusted brand and strong track record as a technology provider for the global capital markets, Nasdaq is uniquely placed to address industry pain points by improving liquidity, scalability, and resiliency, with the goal to engender greater trust and confidence in the digital assets ecosystem.”

Nasdaq Digital Assets will be led by Ira Auerbach, who joined Nasdaq from Gemini, where he was the global head of Gemini Prime, the crypto platform’s prime brokerage services.

Also, Nasdaq has expanded its anti-financial crime technology with new capabilities and coverage for the cryptocurrency ecosystem. Through its Verafin and Surveillance product offerings, Nasdaq has launched a suite of crypto-specific detection capabilities to continuously monitor anti-money laundering, fraud detection, and market abuse across traditional and digital assets.

“Our expanded suite of anti-financial crime solutions reinforces our commitment to protecting the integrity of the financial system,” Jamie King, head of Anti-Financial Crime at Nasdaq, said. “As the world of digital assets evolves and converges with traditional finance, it is crucial to provide the necessary portfolio of technology solutions designed to safeguard participants across the financial ecosystem.”