US stock exchange Nasdaq has just suspended its initiative to launch a platform to store digital assets.
The platform's CEO, Adena Friedman, has said in the Q2 2023 report the decision has been made due to "regulatory risks" in the US.
She has explained:
"This quarter, considering the shifting business and regulatory environment in the United States, we have made the decision to halt our launch of the US digital assets custodian business and our related efforts to pursue relevant license."
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However, Friedman has noted Nasdaq remains committed to developing the digital asset business. The exchange is working on a technology platform to "serve a larger global market," she has said.
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The exchange will closely monitor regulatory developments for the crypto sector in the coming months, Friedman has added.
Nasdaq first announced its initiative to create a digital asset custody service back in March 2023. The organization intended to launch the platform in the second quarter of the year.