Custody of digital assets

The main care conversations with clients have for some time explained why their statements come from Schwab or Fidelity. Crypto offers additional storage options that need to be discussed and made some decisions.
Cryptocurrencies really focus on the idea of ​​self-preservation. This means controlling the private key in this case. “Neither your key nor the code” is a common mantra.
We have optional institutional oversight with suppliers such as Gemini, Anchorage and Kingdom Trust to remove some of the technical barriers to recruitment and investment. There are also funds and trusts such as Grayscale’s Grayscale Bitcoin Trust (GBTC) and Bitwise’s Bitwise Crypto Index Fund (BITW). (Disclosure: Grayscale is the property of CoinDesk’s parent company, Digital Currency Group.) These vehicles transform digital assets into digestible investment products that traditional custodians can own.
It gives your clients the option of preserving their digital assets, which means they can consult with you for guidance. Your job as an advisor is to understand the technical risks and how the risks are offset by profits.
Depending on each investment and use case, it can become a single asset like Bitcoin on two or three different storage platforms. Your customers can store some Bitcoins offline (usually called cold storage or hard wallet), some in an interesting savings account, and some you It is in an account that you manage and exchange for it. One asset, three storage platforms, all executable.

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