Custody Services for Digital Assets: Everything You Need to Know

Published on by Cointele | Published on

Why do institutional investors need custodial services, and what are the unique challenges of Bitcoin custody?

Unique challenges of Bitcoin custodyProviding custody for traditional financial instruments is already challenging in its own right, and Bitcoin and other cryptocurrencies present an exceedingly complex task.

In order for big financial institutions to consider investing in Bitcoin, the custody side needs to be addressed.

On top of custody, investors also need insurance products that protect Bitcoin and other cryptocurrencies from theft.

Bitcoin ETFs?One hot topic in the crypto space is Bitcoin exchange-traded funds.

The U.S. has not approved a Bitcoin ETF, and one reason being that there aren't any third-party custody solutions that the SEC trusts.

A mature fiat onramp ecosystem with custody and insurance allows family offices and hedge funds the peace of mind and convenience to allocate some capital to Bitcoin.

Personal custody: Be your own bankBesides the institutional custody space, retail investors are also looking for improved ways to manage their Bitcoin holdings securely.

A node in every homeA popular narrative emerging in the Bitcoin space is the idea that every house will have its own Bitcoin node that trusted family and friends can reference.

Unchained is a semi-trusted Bitcoin bank that offers self-sovereign custody software as well as financial services such as lending.

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