Traditional assets like equities and bonds are custodied by large organizations such as Bank of New York Mellon or State Street.A major hurdle for institutional investors to enter the digital asset space has been the lack of such a custodian (“qualified custodian”).
Digital asset safekeeping revolves around providing cold storage of private keys with so-called “air-gapped” devices, hardware that is never connected to the internet to prevent hacks, theft or collusion. As of today, the traditional custodians have averted moving into this space and institutional investors have to turn to the likes of BitGo, Ledger, Trezor or Coinbase Custody.
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