First announced in September of 2022, Nasdaq is reportedly close to officially launching its own crypto custody services. This pending launch is particularly notable, as not only is Nasdaq one of the largest marketplaces of its kind, it would indicate a continued demand among institutional investors for exposure to digital assets like Bitcoin.
Despite recent turmoil among each TradFi and DeFi, digital assets have managed to pull themselves out of a prolonged bear market – whether this is due to investors fleeing to a perceived safe-haven in the midst of a banking crisis, or routine cyclical activity as the next halving approaches, the fact remains that digital assets have proven resilient when faced with uncertainty. Combined with the demise of many service providers over recent months, there is a clear and growing need for such offerings that Nasdaq looks poised to capitalize on.
Recently, we highlighted a few of the more lofty forecasts floating around for Bitcoin (BTC). One example came from ARK Invest, which forecasts scenarios for BTC to reach between $258,000 and $1.48M by 2030. In each scenario, ARK believes that the two main driving factors for growth will come from leeching off Golds marketcap, and institutional adoption.
In order for this institutional adoption to occur however, a foundation of services catering to investors needs must first be established.
News that Nasdaq is proceeding forth with its plan to launch a custodial service in the months leading up to the next halving is potentially a well-timed and welcomed service that may be a predicator of what is to come.
Crypto Trading with Fidelity
Nasdaq launching a custodial service is not the only instance of major companies beginning to service the digital asset sector in recent months. Fidelity, which boasts over 35 million customers, announced that it was giving each access to crypto-trading through its platform.
Furthermore, the company also facilitates Bitcoin (BTC) investing through 401(k) – a move seen as controversial by certain Senators that believe the asset boasts to much risk to be including in retirement plans.