Crypto Long & Short: Redefining the Custody Standard for Banking

In this week's Crypto Long & Short newsletter, Pascal Eberle discusses the shift in custody standards for banking within the crypto space. He emphasizes that custody is not merely about holding assets but proving their secure management through technological innovations like multi-signature (multisig) approaches. This contrasts significantly with legacy custody systems, where trust is placed in centralized entities and regulatory frameworks, leading to potential risks. Eberle argues that multisig technology redistributes control among clients, allowing them to manage their own keys and verify transactions in real-time, which enhances security and accountability. This new model is expected to redefine client expectations and the competitive landscape for banks. Meanwhile, Andy Baehr reflects on the crypto market's search for leadership and catalysts for future growth, cautioning that recent price actions and market conditions present both challenges and opportunities for players in the sector.

Source 🔗