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- Nasdaq has indicated that it is ready to offer custody services on cryptocurrencies including Bitcoin and Ethereum following an increase in institutional demand.
- In 2022, Wall Street became increasingly interested in cryptocurrencies despite the decline in prices.
The second largest stock exchange in the United States has announced the introduction of custody services among its many products. according to press release By the stock market operator, the move was prompted by increased institutional interest. Although the post did not specify which digital assets the operator will offer, in the past couple of years a clear coin has grabbed the attention of institutional investors – Bitcoin (BTC) and Ethereum (ETH).
For most institutional investors, the two largest cryptocurrencies provide the most network security, price stability, and liquidity to act as seed investments in the crypto space.
Tal Cohen, head of North American Markets at Nasdaq, expressed confidence in the latest project, noting:
Demand among institutional investors to engage in digital assets has increased in recent years, and 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 original crypto companies, there were no immediate plans to acquire a crypto company.
Wall Street investors storm the cryptocurrency market
Nasdaq’s latest move is in line with the recent trend of traditional institutional investors. As CNF recently reported, BlackRock has partnered with Coinbase to attract institutional investors to access the cryptocurrency market through Coinbase Prime.
In a similar partnership, US crypto exchange FTX recently confirmed its work with GameStop. According to the exchange and video game company, the collaboration is about enhancing interactions between the gaming and coding communities.
The entry of traditional institutional investors is set to lead to an influx of new funds into the cryptocurrency market and an increase in demand. Analysts emphasized that the entry of institutional investors could lead to better regulation, higher prices, and mass adoption of cryptocurrencies.