Crypto Long & Short: Redefining the Custody Standard for Banking

In this edition of Crypto Long & Short, Pascal Eberle from Sygnum Bank discusses the evolution of custody standards in the banking sector, emphasizing that custody is transitioning from merely holding assets to proving their correct retention through technology like multi-signature solutions. Eberle critiques traditional custody systems, which rely on central authority and often entail trust issues, citing examples of varying regulatory protections. He argues that multi-signature technology empowers clients by allowing them to control their keys, enhancing security and accountability. This shift paves the way for a new standard in custody rooted in cryptographic verification rather than legal frameworks alone. Furthermore, the article touches on the current sentiment in the crypto market, which seems to be awaiting a spark for the next rally, as certain assets like ETH and XRP show potential. The analysis reveals a divergence in ETH's performance compared to DeFi yields, suggesting a narrative-driven move rather than a demand-based one, highlighting the complexities and challenges ahead for the market.

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