Companies Compete to Be Cryptocurrency Custodians

The battle pits some of the biggest financial-services companies against startups

What is the safest way to store digital currencies?

香蕉视频苹果下载The answer to that question could decide the biggest winners in a multibillion-dollar race to determine what companies will be the leading custodians of cryptocurrencies, which are increasingly being used by money managers and other institutions for themselves or their clients.

As with traditional assets, such as stocks, bonds or gold, SEC-registered investment advisers are required by law, with certain exceptions, to hold assets with a qualified custodian—a specialized financial firm that holds a customer’s assets separate from the customer’s financial manager or brokerage firm. Custodians generally charge a small percentage of the assets they hold—up to about 0.5%.

For cryptocurrencies, the role of custodian is especially important, since all a thief or hacker needs to steal cryptocurrency is the string of private keys, or codes, assigned to that specific asset.

香蕉视频苹果下载As a result, a roster of companies ranging from fintech startups to some of the biggest names in the financial-services industry are now competing to play the role of cryptocurrency custodians.

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