Corporate Bitcoin and Crypto Investors Prefer Third-Party Asset Custody

  • Many high-income individuals and institutions in Asia, including family offices, prefer not to handle their own digital asset custody services, according to a report by PwC and Aspen Digital.
  • These entities consider the complexity and risks associated with self-custody of digital assets to be too high.
  • Third-party companies are often trusted to handle these services, as they can efficiently manage operational activities and ongoing trade transactions.

Why Trusting a Company is Easier

According to the joint report by PwC and Aspen Digital, self-custody of digital assets is seen as a more challenging task than entrusting them to a third-party company. This is because these companies can efficiently handle both operational activities and ongoing trade transactions, making them a preferred choice for many entities.

The Importance of Asset Separation in the Digital Asset Industry

Duncan Fitzgerald, a manager responsible for digital assets and Web3 at PwC, emphasized the importance of separating customer funds from company assets. He noted that this has been a crucial aspect in the traditional securities industry for many years, and it’s encouraging to see reliable options emerging in the digital asset ecosystem as well.

Complexity of Custody Systems Seen as a Barrier by Corporations

Elliot Andrews, CEO of Aspen Digital, pointed out that the complexity of custody systems is often seen as a barrier by corporations. He stressed that offering the right custody solution is one of the key elements for successful investment opportunities, as it helps prevent significant asset losses.

Debate Over Personal vs. Third-Party Custody

The crypto world has been debating whether digital assets should be stored personally or entrusted to a third-party company. This discussion was sparked by the “Recovery” product from cold wallet manufacturer Ledger, which splits the user’s key phrases among three different companies. If a user loses these phrases, they can request them from these companies, effectively putting the key phrases in the hands of third parties.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin’s Solid Support: Top Trader Eugene Ng Ah Sio Predicts Surge After Market Recovery

In a recent broadcast, trader Eugene Ng Ah Sio...

DWF Labs Transfers 25 Million USDC to Trump Family’s Crypto Project WLFI: A Step Toward USD1 Stablecoin Launch

On April 4th, COINOTAG News reported a significant movement...

New Whale Address Acquires 11,463 ETH for $20.78 Million: What This Means for Ethereum

On April 4th, COINOTAG reported a significant transaction in...

Ethena Labs Launches USDe and sUSDe on BNB Chain for Enhanced Trading and Lending Opportunities

Ethena Labs has made a significant breakthrough by officially...

USDC Treasury Burns 100.35 Million USDC on Ethereum Blockchain in a Single Day

In a significant development for the stablecoin ecosystem, recent...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img