2020 Will Bring The Rise Of Prime Brokerage In Crypto Custody
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Why 2020 Will Be the Year of Prime Brokerage in Crypto Custody
Crypto custody is one of the most important and challenging aspects of the cryptocurrency industry. It involves the safekeeping and management of digital assets, such as Bitcoin, Ethereum, and other tokens. Crypto custody is essential for investors, traders, institutions, and platforms that deal with large amounts of crypto assets on a regular basis.
However, crypto custody is not a simple task. It requires high levels of security, compliance, scalability, and interoperability. Moreover, it involves multiple services and functions, such as storage, transfer, lending, borrowing, staking, trading, and reporting. These services are often provided by different providers, which creates fragmentation and inefficiency in the crypto custody market.
This is where prime brokerage comes in. Prime brokerage is a term that refers to a bundle of services that are offered by a single provider to clients who have complex and diverse needs. Prime brokerage is common in the traditional financial industry, where it serves hedge funds, institutional investors, and high-net-worth individuals. Prime brokers offer services such as custody, execution, clearing, settlement, margin financing, securities lending, risk management, and reporting.
In 2020, we will see the rise of prime brokerage in crypto custody. This means that we will see more providers offering comprehensive and integrated solutions for crypto asset management. These providers will leverage their expertise, technology, and partnerships to offer a one-stop shop for crypto custody clients. They will enable clients to access multiple services and functions through a single platform or interface. They will also offer competitive pricing, enhanced security, regulatory compliance, and superior customer service.
Some of the benefits of prime brokerage in crypto custody are:
Reduced complexity and cost: Clients can simplify their operations and reduce their expenses by dealing with a single provider instead of multiple ones. They can also benefit from economies of scale and scope.
Increased efficiency and performance: Clients can optimize their portfolio management and trading strategies by accessing a wide range of services and functions through a single platform or interface. They can also take advantage of faster execution, lower latency, and higher liquidity.
Improved security and compliance: Clients can enhance their security and compliance by entrusting their assets to a reputable and regulated provider that follows industry best practices and standards. They can also benefit from advanced encryption, multi-signature authentication, cold storage, insurance coverage, and audit trails.
Greater flexibility and innovation: Clients can customize their solutions according to their specific needs and preferences. They can also access new opportunities and markets by leveraging the provider's network and partnerships.
Some of the examples of prime brokers in crypto custody are:
Coinbase: Coinbase is one of the largest and most popular cryptocurrency platforms in the world. It offers a range of services for retail and institutional clients, such as buying, selling, storing, transferring, lending, borrowing, staking, earning, and trading crypto assets. It also offers Coinbase Custody, which is a dedicated platform for institutional clients that provides secure and compliant crypto asset storage.
BitGo: BitGo is a leading provider of security, compliance, and custodial solutions for blockchain-based currencies. It offers BitGo Trust Company, which is a qualified custodian that holds and safeguards digital assets for institutional investors. It also offers BitGo Prime Services, which is a suite of services that includes trading execution,
clearing,
settlement,
margin financing,
securities lending,
and reporting.
Genesis: Genesis is a full-service digital asset prime broker that provides trading,
lending,
borrowing,
custody,
and treasury services for institutional clients. It offers Genesis Custody,
which is a qualified custodian that leverages BitGo's technology
and Genesis Prime Services,
which is a suite of services that includes trading execution,
clearing,
settlement,
margin financing,
securities lending,
and reporting.
In conclusion,
2020 will be the year of prime brokerage in crypto custody.
This will bring more convenience,
efficiency,
security,
and innovation to the crypto asset management market.
It will also attract more institutional investors
and platforms
to the cryptocurrency industry. aa16f39245