Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
OR
Please fill out the required fields Please fill out the required fields Please fill out the required fields
Get Into Cryptocurrency Trading Today
Among the latest news in the crypto market is that the US bank regulator responsible for regulating custody arrangements green lights crypto custody by banks. A leading bank regulator gave banks in 2020 the green light to safe keep cryptocurrency.
Cryptocurrency custody is among the strategies used to introduce digital currency into the industry. Cryptocurrency custody solutions are used by traders holding large quantities of digital currencies.
Cryptocurrency trading and the use for payments is the modern way of doing things. There is a need to provide the services to people who need them. Banks will now be able to hold and safeguard cryptocurrencies for their customers. They will also hold the keys they will be using to access their investments.
The authorities have allowed banks to use virtual vaults to safe-deposit boxes. This is to ensure that customers get end-to-end services. The news of the regulator green lights crypto custody has the following significance.
1. Safeguarding of cryptocurrencies
While there are several options for safekeeping cryptocurrencies, they come with several drawbacks. The private crypto keys face the constant risk of getting lost. This is because they are extremely hard to remember. Note that the keys cannot be restored, and if a trader loses them, they end up losing their assets.
Online wallets are also used to store crypto assets and allow access to transactions. Yet, these face the risk of hackers who can take the assets if they have access.
Some traders store the private keys offline through paper wallets or hardware wallets that resemble flash drives. Like the keys to the software wallets, investors can lose keys to hardware wallets. If you lose physical custody of the wallets and keys, it is impossible to recover them and the assets too.
Custody solutions by banks will go a long way in protecting customers from the looming danger. Protecting large amounts of digital assets with software and hardware wallets is becoming a challenge.
2. Regulation
Custodial cryptocurrency solutions will also go a long way in enhancing regulation. As much as the regulator green lights crypto custody, it is worth noting that not all institutions can do so. This regulation is in place to protect investors and their assets.
Banks, savings associations, futures commissioned merchants, and registered broker-dealers have the green light. The regulator has gone further to specify that only a few mainstream banks will be offering the services.
3. Ease of use
Regulator green lights crypto custody, and one of the benefits is the provision of services easy to use. Investors that are not tech-savvy have been struggling with the complexity of the crypto interfaces. Other times, they have to seek help from people.
Custodial solutions for crypto will enhance the ease of use. This is especially for investors with complex portfolios. Custodial solutions will meet both security requirements and usability.
More people look to get custodial services following the announcement. You must have a list of requirements to deliberate your choice. Here are the things to consider.
1. Scalability and reactivity
The solution has to be responsive enough to allow you to react to sudden market changes. Unfortunately, cold storage is known for tedious and time-consuming processes. Mainstream banks understand the unique nature of digital currency. This is alongside the need to customize the solution. This is to allow investors to take advantage of the ongoing trends.
The solution should be flexible so that customers can get payouts when they need them. Note that delays in this light provide enough time for the value of the assets to change. Transaction capabilities, in this case, need to be scalable. This will allow the desired number of transactions within a given time.
2. Security
There is one question that people have asked on the announcement, "US regulator green lights crypto custody." That is, how secure the solutions are. Security is a significant concern in the crypto market. Hackers are hunting for wallets they can take over, thus the need for protection.
3. Multi-party computing
Multi-party computing (MPC) features should be available on the custodial solution. With that, you will know that scalability and security issues are addressed. Multi-party computing provides a top-tier security architecture. At the same time, it allows flexibility in transactions.
How does multi-party computing enhance security? The crypto key is not usually stored in one single space using this architecture. The different slices come together when the user requires the key for transactions.
Multi-party computing also paves the way for multi-signatory. For instance, hedge funds and other institutional investors might need several people to sign off on the transactions. This architecture makes it possible by allowing the different signatories have different slices of the key.
Already there are big exchanges in the cryptocurrency custody space. Coinbase is a pretty good example, making acquisitions of a registered broker. Institutions like the Swiss Bank have already made their moves. That is by launching cryptocurrency vaults to provide their customers with the solution.
How does the future look for the custodial space? It would be safe to say that the future looks bright. Already, exchanges are making acquisitions. This is to be able to offer their investors the solution. More so, banks are availing the solution in their services due to the projected high demand.
As cryptocurrencies grow in popularity, custodial solutions are becoming popular too. Institutional investors and analysts have declared the solution as a bridge. That is between traditional and cryptocurrency investment space.
As the US regulator green lights crypto custody, big players in the investment market are reacting. This is as seen with the Swiss Bank's case. The fact that there are big names in this space will also motivate investors to use the solution.
Regulatory clarity signals high security. This will also contribute to the custodial solutions' popularity.
Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
ALL
TRENDING
WATCHLIST
Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.
{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
ETH Bears to Retarget Sub-$1,750 on Staking Stats and SEC Angst
39 minutes ago | FXEmpire
Australian Banking Giant CBA Takes Action Against Crypto Scammers
59 minutes ago | Coinspress
ADA, SOL and MATIC Tank 10% Each After Robinhood Delisting, Will More Exchanges Follow?
1 hour ago | Coingape
XRP´s uptrend defies market turmoil, details inside
1 hour ago | AMBCrypto
JustBit Casino Review
JustBit Casino, which specializes in virtual currencies, is easy to use because withdrawals are expl...
Huobi Token General Overview
Is Ripple The Cryptocurrency of 2021? - In Depth Review of Ripple XRP
Ethereum Classic Review
Monero General Overview
XBO
XBO.com cryptocurrency exchange redefines how you interact with crypto. Designed to make the benefit...
Bithumb
Understanding Bithumb This article highlights what is Bithumb and where it is located. It also di...
Bitstamp
Bitstamp's continued success in the crypto market This article highlights what Bitstamp is. I...
Bitfinex
Bitfinex general overview delves deep into its operations since its inception in 2012 up to date. It...
FTXUS
Introduction to the FTXUS Trading Platform FTXUS is a type of cryptocurrency derivatives exchange...
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
Cryptopay.me
Updated, Apr 04, 2020 Cryptopay is a revolution for Bitcoin users. This platform offers its custo...
Mycelium
MyCelium is an application for Mobile that offers many possibilities of security and confidentiality...
US Banking Regulator Green Lights Crypto Custody
Among the latest news in the crypto market is that the US bank regulator responsible for...
ING Direct Bank Is Quietly Becoming A Serious Blockchain Innovator
Blockchain, the technology behind Bitcoin continues to rage at organizations and institutions....
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
Cryptopay.me
Updated, Apr 04, 2020 Cryptopay is a revolution for Bitcoin users. This platform offers its custo...
Mycelium
MyCelium is an application for Mobile that offers many possibilities of security and confidentiality...
COMMENTS (0)