Following Nasdaq's decision to halt its pursuit of becoming a licensed custodian for cryptocurrencies and digital assets due to regulatory uncertainties in the U.S., the exchange behemoth shifted its focus to the burgeoning realm of tokenized U.S. Treasury bills (T-bills). However, the pace of progress on this front has prompted the departure of certain members from Nasdaq's digital assets team, as per insights from individuals familiar with the matter.

Several cryptocurrency-related projects, including an undisclosed initiative to tokenize U.S. Treasury bills, have faced delays or cancellations within Nasdaq, leading to the departure of employees from its digital assets division, according to three sources with direct knowledge of the situation.

In July, Nasdaq publicly announced its decision to pivot away from its ambitions of securing a license to provide custody services for crypto and digital assets, citing the prevailing regulatory ambiguity in the U.S. Subsequently, the company discreetly transitioned its focus towards the rapidly emerging domain of tokenizing T-bills, aiming to create blockchain-based representations of U.S. debt instruments.

However, the transition has not been seamless, with some members of Nasdaq's crypto team no longer employed by the company, as confirmed by individuals familiar with the situation. The exact number of departures and the extent to which layoffs were involved remain undisclosed. Some former employees have reportedly joined companies that are making more aggressive forays into the crypto space, contrasting with Nasdaq's deliberate approach in charting its path to support the industry.

When approached for comment, Nasdaq declined to provide insights into its tokenization endeavors or the circumstances surrounding the departure of staff members.

The finance industry has witnessed a fervent push towards the tokenization of traditional financial assets, with notable players such as BlackRock endorsing the trend through initiatives like its BUIDL platform, underscoring the growing convergence between blockchain technology and conventional finance.