Nasdaq has decided to cancel its plans for a cryptocurrency custody service, according to CEO Adena Friedman during an earnings call on Wednesday. The service was originally scheduled to launch in Q2 of this year, but the company has since abandoned the project.

Nasdaq had previously applied for a limited-purpose trust company license from the New York Department of Financial Services to oversee the custody business. This decision is seen as a setback for institutional adoption of cryptocurrencies in the US, where regulators are increasingly scrutinizing crypto firms and related services.