Cryptocurrency Fund Investment CompanyMulticoin CapitalManaging partner and hedge fund manager Kyle Samani has actively invested millions of dollars in the cryptocurrency market, but has always been troubled by "how to ensure his holdings are not stolen."
To address this, Samani and several of his investment partners have begun testing a cryptocurrency custody service that Coinbase is developing, some of which are nearly complete. In a phone interview with Bloomberg, Samani said, “For many investors, digital currency regulation is the last hurdle. Over the next year, regulatory issues will be resolved, and this will unleash a large wave of capital. "
A Coinbase spokesperson said,Coinbase, which expects to receive regulatory approval soon, will serve customers who require qualified custodian qualifications to meet U.S. asset custody standards.
However,
However,The SEC requires most investment advisors to place client funds in a compliant escrow service framework, which also means that there will be nearly250 Cryptocurrency Fundsimage description
Statistics on the number of cryptocurrency funds in May this year
Sam McIngvale, head of the Coinbase project, estimates that once the custody service is launched, about $20 billion in encrypted assets will flow into the custody service.Despite Bitcoin's recent downward trend, the cryptocurrency has been on the rise in recent months as startups continue to launch ICOs and put their tokens on the market.
In terms of specific cooperation and implementation, McIngvale revealed that Coinbase has discussed relevant cooperation matters with Wall Street custodians. Founder and CEO of hosting technology provider TrustologyAlex BatlinTrustology has discussed the issue with traditional custodians, who believe it is premature to have such discussions. Batlin also said that Trustology plans to launch an institutional regulatory service in September this year.
Not only Coinbase, but crypto startups such as BitGo are also communicating with the SEC and financial regulators.
buybuy. Kingdom Trust is a regulatory licensed digital asset custodian. BitGo CEO Mike Belshe revealed in an interview that BitGo is working hard to cooperate with a state-owned chartered trust company in South Dakota and has submitted relevant documents. Not only trust companies that have obtained regulatory approval, BitGo has also cooperated with hundreds of hedge funds and asset management institutions that have not yet obtained regulatory approval.
supplysupplyPrincipal, interest and dividend income management, asset settlement processing and investment performance management services.
Sean Marie Mignetti, head of Global Advisor, said the regulatory consortium Komainu plans to start internal testing of its managed service this summer and offer clients a more open solution by the end of the year. Komainu has now listed its first beta clients for hedge funds, family offices and investment management firms.
In order to allow customers to trust their encrypted assets with peace of mind, in addition to trying their best to obtain regulatory licenses, various custody institutions are also working hard to expand the types and scope of their asset custody services.
Institutional investors have long relied on global custodians such as Bank of New York Mellon, JPMorgan Chase, Northern Trust and State Street to oversee cash, securities, gold, diamonds and other assets. The emergence of cryptocurrencies has brought new challenges to traditional asset supervision: digital assets are vulnerable to hacker attacks, and lost funds are difficult to trace or even recover.
To meet the challenge, several Wall Street giants are also exploring the development of encrypted custody services. For example, it provides customized services for customer identification and verification, and directly invests assets in designated exchanges according to customer needs.
BNY Mellon is exploring plans for a cold storage service, according to people familiar with the matter. Cold storage is the storage method of keeping encrypted asset keys offline, which can effectively prevent hacking attacks. Compared to Internet-connected hot storage, cold storage reduces transaction processing speed and also reduces asset risk.
“Northern Trust takes a very cautious approach to cryptocurrencies, and we view crypto services as an integral part of our corporate innovation strategy,” a spokesperson said in an email.
State Street spokesman Marc Hazelton said in a statement, “We are considering developing corresponding service products around emerging encrypted asset classes, however, there is still a lot of work to be done from regulation to security, governance, etc. However, we will continue to Strengthen ties with customers and develop products and services that meet their needs."
It should be noted that crypto asset custody fees may not be cheap.also,
also,Autonomy Research LLPI am Zhang Yi, a reporter from Odaily. I am exploring the real blockchain. For breaking news and communicating, please add WeChat ro20110723. Please note your name, unit, position and reason.
I am Zhang Yi, a reporter from Odaily. I am exploring the real blockchain. For breaking news and communicating, please add WeChat ro20110723. Please note your name, unit, position and reason.
