A two-day event called the Consensus 2019 conference has been taking place since Monday, May 13, 2019. During the event, particularly on Tuesday, May 14, 2019, CEO of Onchain, Alexandre Kech supposedly predicted that we will continue to see growth in partnerships established between crypto and traditional custodians reports Coin Telegraph.
Said remarks were supposedly made during the panel discussion dubbed, “Custody: The New Global Competitive Landscape,” and are reasoned to happen due to existing restrictions.
He has since made several cases supporting his claims. For starters, he noted that crypto custodians are efficient when it comes to adding new tokens to their wallets, along with the possibility of offering a variety of them. He trusts that the technical aspects along with its current “compliance” is what makes crypto custodians advantageous. As per his claims:
“We have the agility, both in terms of compliance and technology, to deploy those coins faster.”
When it comes to traditional custodians, he argued that they are typically hesitant to include, “new coins due to institutional barriers,” reports Coin Telegraph. This is the main reason why traditional custodians seek partnerships with crypto custodians – as a way to overcome the imposed barriers.
In addition, this is said to benefit crypto traders and increases their trust towards such services because legitimacy strengthens given the involvement of a bank.
Another speaker, CEO of Kingdom Trust, Matt Jennings also shared similar thoughts to that of Kech. In particular, his experience led him to argue that traditional custodians are limited in terms of offerings and the type of customers they serve, adding that he, “doesn’t see that being any different in crypto space.” This aforementioned opinion is possibly suggesting the coming together of different custodians to break free from limitations.
A third thumbs up to validate what the former two have shared has also been disclosed as coming from the CEO of Coinbase Custody, Sam McIngvale, who added that selling a custody is equivalent to selling, “trust and a track record”.