Wall Street Is Grappling With Crypto’s Trillion-Dollar Custody Question
- Nasdaq halts push in surprise move, despite demand for service
- Regulatory gray areas, costs are an obstacle for some
Wall Street activity in the battle to provide custody services for the more than trillion-dollar digital-asset market is heating up rapidly, and in surprising ways, turning what would typically be considered a sleepy area of finance into one of the most lively sectors.
Nasdaq Inc. last week said it’s halting plans to launch its own cryptoasset custodian, citing a lack of business opportunities and an uncertain regulatory backdrop. Citigroup Inc. is reviewing its partnership with Swiss digital-asset custodial software provider Metaco Inc., which had been acquired by another crypto firm, while State Street axed a deal with London’s Copper Technologies. Elsewhere, Societe Generale was granted a license by France’s market regulator, allowing it to provide services for storing and safeguarding digital assets, while UK asset manager Schroders is on the hunt for a crypto custodian.