Crypto Custodianship Solutions Near, Big Wave of Capital to be Unlocked
Olga Kharif and Sonali Basak from Bloomberg have put out a piece where they rightly expect that as solutions for custody of cryptos become a reality, it will imply that such service will attract a much b larger pool of investors, the institutional-type, which according to Hedge fund manager at Multicoin Capital Kyle Samani "it will unlock a big wave of capital."
Samani notes: “There are a lot of investors where custodianship was the final barrier,” Samani said in a phone interview with Blomberg, adding that "over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.”
Moreover, as CoinLive reported back on May 15:
"Boston-based State Street, the world’s second-largest custody bank with around £24tn in assets under custody and administration, came out to announce that safeguarding clients' digital assets could be a service they are looking to provide a solution in the near future. If confirmed, it would represent a major move as it sets a precedent as the first global bank to provide custodianship services for crypto-related investments."
Additionally, at CoinLive, we have also analyzed why the opening of a Bitcoin trading desk by the financial giant Goldman Sachs represents a hint is near. Back on May 3rd, we reported:
"The custodial solutions will come sooner than later now that Wall Street has a direct interest to trade and keep custody of crypto assets. Remember, custodianship options that meet the standards of Wall Street is one of the main sticking points not allowing a more aggressive entry of capital into the cryptoverse. The NY Times story already suggests that Goldman Sachs has found a way to ‘confidently hold Bitcoin for customers without its [sic.] being stolen by hackers…’
While Coinbase awaits a final approval by the regulators to serve the custodian needs of its institutional clients, other exchanges such as Circle (owned by Goldman Sachs, acquired Poloniex earlier this year) and BitGo, as reported by Bloomberg, have also been taking steps to safe guard their clients' interest by approaching regulators.
That's not all, as Bloomberg adds:
"In May, investment bank Nomura Holdings Inc. joined crypto firms Ledger and Global Advisors to create a custody consortium called Komainu. And at least three giant Wall Street custodians -- Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. -- are working on crypto-custody services or exploring it, people briefed on their efforts said."
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