Crypto Long & Short: Redefining the Custody Standard for Banking

In this edition of Crypto Long & Short, Pascal Eberle of Sygnum Bank discusses the evolving custody standards in the banking sector, emphasizing that custody is increasingly about proving correct asset management rather than merely holding assets. Multi-signature technology (multisig) is highlighted as a transformative feature that enhances accountability by allowing distributed control over assets, minimizing counterparty risk associated with traditional custodial models. Unlike legacy systems that rely on centralized control and demand client trust, multisig provides real-time monitoring and transparency. This shift towards cryptographic accountability marks a philosophical and technological evolution in asset safeguarding. The article also explores how the crypto market is on the lookout for new leadership to drive further growth, with ETH's price dynamics illustrating the challenges of demand in a changing DeFi landscape. Investors must adapt their expectations to this new reality, as traditional investment models appear more outdated in the wake of innovations that prioritize client control and visibility.

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