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The conventional investing world views the provision of custody of assets as a dull but essential activity: It is not hard to ensure the security of your clients' stock and bond portfolios.
The almost $2 trillion cryptocurrency market is rife with activity, and custody is far from dull.
Solana custody tool Marinade's chief commercial officer and former head of digital asset custody at Bank of New York Mellon Hadley Stern said that the service's price tag may be as much as ten times more than that of protecting more conventional assets like cash and securities.
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That is why it might be a promising development sector for startups, Wall Street banks, and other companies seeking to enter the digital asset market.
Traditional financial institutions are mostly on the sidelines due to the legal uncertainties surrounding digital assets, while crypto-native enterprises like BitGo and Coinbase Global have emerged as leading service providers.
Even while the industry is only worth around $300 million right now, it's still a tempting prospect for companies like Fireblocks, who predict yearly growth of around 30% for the sector.
New players are putting their money on the idea that this industry will grow significantly.
Global powerhouses in custody services, including BNY Mellon, Citigroup, and State Street, have either begun to dabble with cryptocurrency custody or have shown interest in doing so.
Disputes over custody have persisted throughout crypto's history, with many early adopters standing by the motto "not your keys, not your coins."
BlockheadThe idea originated from the fact that digital wallets could only be opened by those with the secret encryption keys.
The risk of theft and cyberattacks has decreased thanks to custody services, yet mistakes have persisted.
Robinhood Markets, a retail broking, and Galois Capital, an investment business, both settled with US authorities this month, with a portion of the settlements pertaining to crypto custody issues.
Robinhood has said that it has resolved the issues.
The significance of qualified custody to institutional investors is shown in both instances.
Blockcast
This week marks the first iteration of Blockcast hosted by Copper Head of Revenue APAC, Takatoshi Shibayama, who will take on the role of host in upcoming episodes.
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Events
Token2049 (Singapore, 18-19 September 2024)
Use Blockhead's exclusive discount code BLOCKHEAD10 for 10% off ticket prices.
All That Matters (Singapore, 16-18 September 2024)
The 19th All That Matters is the gateway to the APAC Music, Sports, Gaming, Marketing, Web3, Arts and Entertainment industries.
Conference by day and live music festival by night, ATM is Asia’s premiere ‘Business 2 Business 2 Fan’ event experience bringing together world class speakers with more than 2,000 senior executives.
Get your tickets now with Blockhead's 15% off code: ATM24BLOCKHEAD15
GeckoCon (Bangkok, 11 November 2024)
GeckoCon returns, and this year we're diving into the revolutionary world of Web3 Gaming! Discover how the fusion of blockchain and traditional gaming is creating a whole new entertainment layer.Don't miss out—visit CoinGecko now to secure your spot in our first ever Hybrid Conference set to take place in Bangkok, Thailand. Or from the comforts of your home!
Get your tickets now with Blockhead's 40% code: BHGC24
[Limited to 30 redemptions, expires 12 September 2024]
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