Nasdaq CEO Adena Friedman disclosed that the firm was dropping its plans for a crypto custody service. 

In a Wednesday earnings call, Friedman cited “the shifting business and regulatory environment in the U.S” as the reason behind the decision to stop its efforts to seek the required license from the New York Department of Financial Services (NYDFS).

In March, Bloomberg reported that the global securities marketplace’s plans to launch a crypto custody service would be rolled out by the second quarter of 2023, joining financial giants BNY Mellon and Fidelity that are already in the business of custody services for digital assets. 

Although the firm is now holding off on its crypto custody offering, it intends to support the industry in other ways, Friedman said. This includes partnerships with potential exchange traded fund (ETF) issuers like BlackRock, which named Nasdaq as its listing exchange partner in its filing for a spot Bitcoin ETF last month. 

Nasdaq also appears to be positioning its digital asset custody infrastructure as one that can be potentially integrated with existing crypto firms.

“We continue to build and deliver technology capabilities that position Nasdaq as a leading digital assets software solutions provider to the broader global industry. This includes advancing our custody solution as a technology platform to serve the broader, global digital assets marketplace,” said Friedman in the earnings call. 

Meanwhile, the six applications for a spot Bitcoin ETF, including BlackRock’s, have been added to the Federal Register this week, setting deadlines in motion for the U.S. Securities and Exchange Commission (SEC) to make a decision on whether to approve or reject them.