Coinshares teams up for new custodian solution for institutional investors

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Summary

This will open new and exciting opportunities to global participants and contribute to move digital asset closer to mainstream offerings.” It is the biggest chink in crypto security at the moment that has prevented institutional money from entering the arena. Based in Japan, Nomura offers broker services and both institutional and retail financial services across 30 countries.As the parent company behind Coinshares, Global Advisors has a team with a wealth of experience in commodity trading, hedge funds, FX trading and exchange-traded products. To attract institutional money into the cryptocurrencies market, the incumbent players will have to adapt and cater to them rather than expecting institutional investors to change their standards.One area in particular that crypto is not up to standard for institutions is the custody of assets. In the traditional markets, reputable firms such as JPMorgan, Citigroup and BNY Mellon act as qualified custodians for billions of dollars worth of  securities, holding stock certificates on behalf of shareholders and issuing dividends for many different securities.

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To attract institutional money into the cryptocurrencies market, the incumbent players will have to adapt and cater to them rather than expecting institutional investors to change their standards.

One area in particular that crypto is not up to standard for institutions is the custody of assets. It is the biggest chink in crypto security at the moment that has prevented institutional money from entering the arena. In the traditional markets, reputable firms such as JPMorgan, Citigroup and BNY Mellon act as qualified custodians for billions of dollars worth of  securities, holding stock certificates on behalf of shareholders and issuing dividends for many different securities. In the cryptocurrency market however no "qualified custodian" has yet emerged.

Building the bridge for institutions to make a secure, compliant transition into digital assets is Komainu, a new digital custodian venture between Japanese investment bank Nomura, security business Ledger (creators of the...

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