2018-7-10 10:30 |
Security
Cryptocurrency analysts are increasingly arguing that the lack of custody services provided by leading players from within the finance industry pose a significant barrier to institutional investors seeking exposure to the cryptocurrency markets.
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Lack of Crypto Custody Services Comprises Serious Issue for Institutional Investors
A number of finance professionals have argued that a lack of cryptocurrency services being offered by institutional custodians poses a significant barrier to widespread institutional investment in the virtual currency sector.
Blake Estes of Alston & Bird LLP stated “For chief investment officers, there’s only downside risk in cryptocurrency,” adding that it “would take a leap of faith with a new custodian with no brand recognition.
[…] The level of custody in crypto is the same as with other assets, except that crypto is self-cleared through the blockchain.
Custodians are not so far away from making this happen.”
Do you agree that a lack of trusted custodians providing services to cryptocurrency investors poses a significant barrier to widespread institutional investment in virtual currencies?