Now, Nasdaq Inc. (NASDAQ: NDAQ) is taking its first plunge into crypto, hiring a new group in charge of digital assets, according to a Bloomberg report on September 20, citing the firm’s head of North American markets, Tal Cohen. The initial milestone is to offer custody services for Bitcoin and Ethereum (ETH) to institutional investors. Over the years, Nasdaq provided the technology to crypto market participants rather than creating a crypto exchange to be a competitor to Coinbase and other businesses. 

Custody solution

The advanced custody solution that Nasdaq Digital Assets will look to create will incorporate liquidity and execution services. The focus will be on the industry’s connectivity, availability, and efficiency issues, with an extra layer of protection and security. The offering is subject to regulatory approval.  He also added:

Correlation of the markets

While stocks and cryptocurrencies are very different kinds of investments, for the many of the major ups and downs investors have seen in 2022, the stock market and cryptos moved in tandem.  Currently, the correlation between BTC and other traditional assets is at its highest point, though a while ago, its correlation with the S&P 500 broke a record as well.  Recent research undertaken by Kaiko indicates that high and volatile inflation is the main culprit for a positive correlation between bonds and risk assets over the past month, as inflation tends to lower all assets.  The bigger picture investors could consider when it comes to the alignment of stocks and cryptocurrencies is that it could be a positive development for the digital asset industry. Cryptos are risk assets, and they’re trading in line with other risky assets, and the more integration they see in traditional portfolios, the higher the correlation with other asset classes will be expected.    Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.