Wall Street Grapples With Trillion-Dollar Crypto Custody Dilemma

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 haltingplans 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. ...