Nasdaq is no longer pursuing plans for a crypto custody service, citing business and regulatory concerns, CEO Adena Friedman said in an earnings call on Wednesday.

“This quarter, considering the shifting business and regulatory environment in the U.S., we have made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue relevant license,” Friedman said. 

The exchange operator had been awaiting approval from the New York Department of Financial Services by the end of June to begin offering custody services to clients. Nasdaq announced its intention to move into the space following the collapse of Three Arrows last July and had forged forward, despite a slump in the crypto market. 

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Friedman said the exchange …