CNBC’s Jim Cramer and JP Morgan’s Marko Kolanovic forecast a Crypto rally in 2023. In the meantime, the market is sluggish amidst uncertainties regarding macroeconomic hazards like inflation and labor market imbalances.
As Crypto becomes more prominent in the financial space, corporates are increasingly delving into the Crypto industry. The latest entrant is Nasdaq. In addition to its product offering, the financial giant has launched a Digital Assets Unit.
Introducing the New Digital Assets Unit
The new Nasdaq Digital Assets units will offer Crypto Custody services. The division will also roll out Crypto-native anti-financial crime offerings and crypto-related index solutions. The second largest stock exchange in the US aims to position itself in the Crypto market that has been growing by leaps and bounds. In Russia, for instance, there is a surge in adoption. Consequently, the demand for ledger and Tangem wallets has risen sharply.
The official announcement explains that Nasdaq will offer both hot and cold wallet services. The hot wallet is a solution for storing Crypto online for easier access and convenience. On the other hand, the cold wallet is ideal for security since it is designed with bank-vault foolproof technology that secures Digital Asset keys through Pins and security combinations. The offline wallet is suitable for institutional investors. They are prone to hackers who are getting more sophisticated daily.
Competition in the Market Is Getting Stiffer
The Nasdaq Digital Assets units will compete with established Crypto Assets Services Providers (CASPs) like Coinbase and Huobi. In a press release, the Nasdaq head of North American markets and executive vice president, Tal Cohen, confirmed a market niche for the new product. Cohen notes that institutional investors are diversifying their asset mix, and Digital Assets are at the top of their preferences. Hence, Nasdaq aims to support these corporates in their endeavor by promoting sustainable growth.
To ensure that the business unit’s operations will align with the strategic mission of the stock exchange, Nasdaq has appointed Ira Auerbach to head the division. The former executive at Gemini-a Crypto brokerage and exchange firm- has the experience to steer the business in the right direction.
Cohen adds that Nasdaq will leverage its impeccable reputation in the global capital markets to sustainably promote the adoption of Crypto. To achieve this, the company has outlined a new mission of promoting confidence in Digital Assets by improving scalability, resiliency, and liquidity.
The Wallet Will Support Bitcoin and Ethereum
The Nasdaq Crypto wallet will support Bitcoin and Ethereum in the initial phase. These are the most popular Digital Assets dominating approximately 57%. With an aggregate market capitalization of $926 billion, BTC is valued at $364 billion compared to ETH at $163 billion. The market share of the leading Cryptocurrencies is dropping sharply due to the rise of Stablecoins like Tether (USDT), USD Coin (USDC), and Binance USD (BUSD).