Key Takeaways:
- Nasdaq has announced it has shuttered plans to launch a crypto custodian service.
- The exchange cited changing regulatory climate behind its decision.
NEW DELHI (CoinChapter.com) — Nasdaq Inc. has announced that it will shutter its plans to launch a crypto custodian business in the US.
The exchange operator shared the news in its second-quarter earnings call on July 19. Adena Friedman, the CEO of Nasdaq, stated that despite the decision, the firm remained “committed to supporting the evolution of the digital asset ecosystem in a variety of ways.”
Furthermore, Friedman emphasized that Nasdaq would continue exploring the digital asset sector through technological advancements. The Nasdaq CEO assured investors the firm would broaden its custody solutions as a technological platform to serve the crypto markets.
This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license
Adena Friedman said in the Q2 results call
However, the Nasdaq chief stated they will continue monitoring regulatory events in the coming months. The statement might refer to the SEC’s ongoing legal battle against crypto exchanges Binance and Coinbase, among other regulatory kerfuffles.
In a March 2023 report, Bloomberg reported that Nasdaq planned to launch its digital asset custody service by Q2 2023 end. The exchange had first announced plans to offer custody services for Bitcoin and Ether for institutional investors in Sept 2022.
Nasdaq Reports 4% YoY Growth In Q2 Revenue
The exchange operator reported an increase of $32 million in revenue in the second quarter of 2023. The increase meant a 4% increase year-on-year (YoY) from Q2 2022. Furthermore, net revenues reflected a 4% “positive impact from organic growth.”
Meanwhile, Q2 2023 GAAP diluted earnings per share decreased by 13% YoY, while non-GAAP diluted earnings increased by 3% in the same timeframe YoY.
Moreover, the earnings report noted that Trading Services net revenue declined by 1% ($2 million) in Q2, likely due to “flat organic growth and a $2 million negative impact from changes in FX rates.”
Friedman highlighted that Nasdaq achieved “solid financial results” in Q2 2023 despite an uncertain market environment.
