I said time and time about security of cryptocurrency platforms a well needed for assurance, dependibility, security.
Samani, a managing partner at Multicoin Capital, hopes to offload that task soon. He’s among a small group of institutional investors who have been testing Coinbase Inc.’s new crypto-custody service, one of scores of such offerings in development. Some services are now almost ready -- with huge implications for the market’s future.
“There are a lot of investors where custodianship was the final barrier,” Samani said in a phone interview. “Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.” Coinbase expects to win approval soon to serve clients requiring a so-called qualified custodian that meets tough U.S. standards for guarding assets, according to a spokesman. It’s among crypto startups including Circle and BitGo that have been talking with regulators. 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.Article by By
and