Long one of the pain points of the cryptocurrency industry, institutional custody is starting to fall into place.
Custody is extremely important for financial institutions. That’s because by law they cannot directly hold customer funds. So they need someone to hold those assets. And as you imagine, it can’t just be anybody.
Some big news came out last week at the DC Blockchain Summit…
Tom Jessop, head of Fidelity Digital Assets, announced that Fidelity’s custody service was live and already had clients.
Plus, he said the company had a nice pipeline of customers including hedge funds, RIAs, and family office. Plus, they’ve been talking to pensions and endowments.
All very encouraging news for crypto custody.
Then yesterday it was reported that IBM is coming to the crypto custody space.
Apparently an investment firm called Shuttle Holdings will launch a beta of its crypto custody solution in the near future. And it’s built on IBM’s private cloud and encryption technologies.
IBM’s solution isn’t traditional cold storage. Instead it’s built on a hardware security module, which is described as a tamper-proof lockbox. According to IBM it’s just as safe as cold storage but with better availability.
As you can see… crypto custody is falling into place.
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