15 Jul 2020 — There’s so much that #digitalsecurities players can learn from the success and failures of the cryptocurrency industry. And one of such is Custody Practices 🔐.
In the crypto world, the optimal solution to safeguard the #digitalassets for institutional investors is through a third-party custodian. Custody through exchanges or self-custody is a big NO-NO 🙅 🙅 as the solutions pose significant risks: from hacking threats to operational complexities and regulatory concerns.
👮 Why an independent and regulated, third-party custodian then?
✅ Separates the execution and clearing from asset’s safeguarding
✅ Audited solutions that facilitate compliance with regulation
✅ Core business is in asset protection
✅ Enables asset managers to dedicate themselves to their core business
✅ Offers the potential for agnostic interfacing to exchanges and liquidity, allows arbitrage / best-price-execution opportunities
For those who have not done so, fret not as it’s never too late to appoint a third-party custodian, to ensure your digital securities are fully secured and regulatory compliant, so that you can have a peace of mind, finally.
Source: Finoa – https://lnkd.in/g7d2Jp9