As the demand for cryptocurrency custody services grows, more companies are looking for ways to safely protect users’ crypto funds and prevent them from falling into the wrong hands. Companies such as the Northern Trust Corporation, which thanks to a recent partnership with Standard Ventures, is unveiling a new platform known as Zodia Custody that’s designed to bring institutional-level custodial services to clients with crypto stashes.Zodia Custody Brings That Extra Layer of ProtectionOne of the big problems often associated with cryptocurrencies is that they remain vulnerable to outside market factors and malicious actors. For many years, institutional traders and “asset hounds” in general sought to avoid bitcoin and its altcoin cousins thanks to what was largely regarded as a lack of
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As the demand for cryptocurrency custody services grows, more companies are looking for ways to safely protect users’ crypto funds and prevent them from falling into the wrong hands. Companies such as the Northern Trust Corporation, which thanks to a recent partnership with Standard Ventures, is unveiling a new platform known as Zodia Custody that’s designed to bring institutional-level custodial services to clients with crypto stashes.
Zodia Custody Brings That Extra Layer of Protection
One of the big problems often associated with cryptocurrencies is that they remain vulnerable to outside market factors and malicious actors. For many years, institutional traders and “asset hounds” in general sought to avoid bitcoin and its altcoin cousins thanks to what was largely regarded as a lack of safety in the industry. There was a time where hacks and cyberattacks were so common that many exchanges found it difficult to garner insurance and other tools to keep people’s assets safe.
But as time has gone by, bitcoin has been allowed to “prove its case,” for lack of better terms. The cryptocurrency environment has shown that it’s not going anywhere, and with each passing year, banks and traditional financial institutions have concluded that cryptocurrencies are here to stay, and they had best get used to them.
As a result, we are beginning to see more institutions garnering approval for insurance and other protective measures designed to keep crypto protected within users’ accounts. The line between traditional banking and crypto has also gotten thinner these last few months thanks to banks now getting the greenlight to offer crypto custody measures to their clients.
Zodia will be available to customers in London beginning in 2021. As it stands, the platform is still awaiting some final points of regulatory approval along with some “closing conditions.” Furthermore, it will be required to file with the U.K. Financial Conduct Authority (FCA), though it appears all is set to go through without issue.
Zodia will provide custody services for some of the world’s largest and most popular digital assets including bitcoin, Ethereum, Ripple’s XRP, bitcoin cash and Litecoin. The company claims that these are the assets most in demand from clients, and that they presently account for roughly 80 percent of trades occurring through crypto exchanges and digital asset wallets.
A Steady History of Blockchain Activity
In a recent interview, Maxime De Guillebon – chief executive officer of Zodia – explained:
We combine the risk management, compliance, governance and security approach of a regulated financial institution with the cutting-edge innovation of crypto asset and key management technologies.
The parent company of Zodia – Northern Trust – has dabbled in crypto activity in the past. Three years ago, the company partnered with IBM to establish new blockchain security measures designed to improve management operations for private equity funds. The company also worked with Bond Evalue this year to establish the world’s first blockchain-based bond.