Topic: Opinions On Crypto Custodial Solutions? (Read 106 times)

$20bill is only 300k btc

reading the article and letting it swirl in my mind like the coffee in my mouth..

with the winklevoss ETF they have 200k sat there sidelined. but they as the article says because the ETF will be over $150k of customer assets they will be offering will need to have a institutional 'custodian' for their 200k coins. rather than them just settling themselves up as a 'trust' which was their first filing years ago.

so thats 200k covered, and so i think its more than another 100k coins set aside waiting

and now its just a race for the best custodian service that SEC will honour as being institutionally high calibre worthy of being intrusted with billions of $$ of coins.

..
any way we all know the winklevoss and other non institutional ETF plans wont get green lit easily. those in authority already have their short list of best buddies who are nearly ready with their institutional services to grab the 'first mover' advantage of bitcoin trusts/custodies and investment funds

im thinking goldman and jp morgan are front runners
goldmans ceo recently done a techcrunch interview. and the buzzwords were not about margin trading or investment comities or trading algorithm's.. it was about risk management and security when talking about future services they will aim for. so they are prepping to ride the custodian gravy train

I'd say they're completely unnecessary for the average joe, but may attract companies or large entitities who lack the expertise in handling them. They also offer insurance, etc. to mitigate risks.

All-in-all, they're catered towards institutional money and will only really help adoption towards that end. Considering the lukewarm reactions to crypto in the financial space at the moment, it's going to be a while before these custodial solutions make an observable effect in the market.

"The largest U.S. cryptocurrency operator, Coinbase, estimates $20 billion worth of crypto is sidelined until custody solutions make sense. Sam McIngvale, who’s leading the Coinbase Custody project, believes that crypto assets will flow into custody services once they become readily available."

Does anyone here have an opinion custody solutions in this space? From what I can tell they're relatively new. Sounds like a good way to draw people in and hopeful can lead to some widespread adoption. Citigroup is even going to start offering them to investors. I'd like to hear some opinions from anyone, well versed in these solutions or not.


Source for the quote:

https://www.forbes.com/sites/rachelwolfson/2018/09/20/custodial-solutions-are-latest-innovation-in-cryptocurrency-ecosystem-as-seen-by-coinbase-and-others/#5da0252e171c