What is a crypto custodian? It’s a company or person hired to protect your digital assets and prevent them from being stolen or falling into the wrong hands, and according to Matt Leitch – a social media marketer at Internet Pulse – the need for crypto custodians is getting stronger each day.
Matt Leitch Argues That Crypto Custodians Are Very Necessary
As time has gone by, the digital currency market has thrived, but it has also seen its fair share of bad actors. This has left to theft, scams, and other problems that have ultimately prevented the digital currency space from reaching a mainstream level of legitimacy that could empower it beyond reason. Many want to see crypto as strong as gold or as fiat currencies, but these illicit incidents have prevented it from reaching such a status, and things are getting worse.
This is where crypto custodians could come in. They are third parties, which ultimately go against what crypto was first all about, but they could help recover funds or at least keep them safe by keeping their watchful eyes on your assets, thus limiting their chances of being taken from you. Leitch states:
Let’s start with a bit of history. There have been a few surveys done that show there are about 20 percent of family businesses worldwide that have invested in cryptocurrency, and about 30 percent of family businesses in the United States have done so. Now, globally, about 50 percent of businesses are expressing interest in doing it.
This is a good thing, of course. The more businesses that get involved in crypto, the stronger the space will be, but without anyone watching over said money, it’s likely the institutional presence in the crypto industry could be weakened over time, and crypto custodians may potentially solve this problem.
Leitch continues with:
Most of these businesses reportedly have significant capital to invest for the long term. In addition, most family businesses are expected to not only prosper, but to reach new highs in their portfolios. Of course, diversifying their assets to look for new stores of wealth is their goal. Recently, the combination of rising inflation and rising interest rates are also negative contributing factors to this family project. Due to the many risks that they [need] to be aware of, such as volatility activity and possible regulatory changes in the law, that may be associated with the digital asset market requires family businesses to approach all investments with some caution.
Keeping Things Safe and Steady
He finishes with:
Traditionally, capital market financial institutions have been expected to bear the burden of asset custodianship in that they are responsible for the care and guarding of investors assets. Other services they may be expected to provide are clearing house activities, trade settlement, exchange services, and corporate action execution.
The post Matt Leitch: Crypto Custodians Should Be More Prominent appeared first on Live Bitcoin News.
- @ December 12, 2022 1:00 pm