Nasdaq Inc is placing a big bet on the cryptocurrency market, with the launch of a digital assets business that is aimed at tapping institutional investors.

The new unit, Nasdaq Digital Assets, will offer custody services for cryptocurrencies, including bitcoin and ethereum, potentially pitting it against firms such as Coinbase, Fidelity Digital Assets and Winkelvoss twin-owned Gemini that offer similar products.

Nasdaq has hired Ira Auerbach, a Gemini executive, to lead the new unit.

Also read: Global crypto crash: Spot trading volumes on exchanges fall 27.5%

The stock exchange has also expanded its anti-financial crime technology to detect and curb money laundering, fraud and market abuse risks, it said in a statement on Tuesday, as the market is constantly on the regulator's radar.

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