Better custody solutions are needed in order to drive crypto adoption amongst institutional investors, according to a report by PwC and Hong Kong-based platform Aspen Digital.
In order to further grow adoption amongst high net worth individuals, family offices and asset managers, institutional-grade custody solutions for digital assets need to be in place, according to the main findings of a report jointly issued by PwC Hong Kong and Aspen Digital.
«Self-custody solutions have limitations in supporting the trading and operational needs of growing digital asset portfolios, while digital asset managers may not have the capabilities and resources to manage all operational complexity and security risks,» the report said.
Evolving Solutions
In response, custodians are increasingly evolving to provide compliant and secure custody solutions. They are also expanding into new areas such as decentralized finance, non-fungible tokens and the metaverse.
«The safe-keeping of assets and ensuring that they are properly segregated is a fundamental need,» said Duncan Fitzgerald, digital assets & web3 co-leader, PwC Hong Kong. «This has long been recognized in the traditional securities industry. It is pleasing to see that credible options are now emerging in the digital assets ecosystem.»
