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The cryptocurrency industry is always looking for ways to expand its reach into traditional industries. There is still a wide scope of skepticism for an industry that can sometimes be hard to grasp. New ideas and innovation are the mainstays of cryptos. However, traditional companies in mainstream industries tend to get stuck in the status quo.
In a recent post on the Yahoo Finance page from an article originally on by Max Boddy, the notion of new partnerships was discussed. Alexandre Kech is the CEO of Onchain Custodial. He has predicted that partnerships with traditional custodians will continue to grow.
He made those remarks during a panel meeting called “Custody: The New Global Competitive Landscape,” during Consensus 2019 earlier this week. He added the observation that crypto custodians do a much better job of adding new token support to their wallets. They are also willing to hold a variety of crypto assets. In a direct quote, he stated:
“We have the agility, both in terms of compliance and technology, to deploy these coins faster.”
In contrast, he added that traditional custodians tend to be reluctant when it comes adding new cryptos. The main reasoning was institutional barriers. However, they are more willing to partner with crypto custodians as a way of serving existing customers seeking out crypto opportunities. These partnerships also ease any fears of investing in these crypto assets outside of the traditional custodian sources. This pertains to banks and other mainstream financial institutions.
Also on the panel was Kingdom Trust CEO Matt Jennings. He noted that his company has been working closely with large, traditional custodians for the past several years. Noting that these institutions are conservative by nature. He added:
“Their offerings are limited. They are for a limited group of customers and they typically own a limited group of assets. And I don’t see that being any different in crypto space. CEO of Coinbase.com Custody Sam McIngvale echoed these sentiments. He suggested that selling custody is ultimately selling trust and a track record.”
ArmyOfBitcoin originally took the position that the lack of custodial solutions remains a roadblock to investment in crypto assets from the traditional custodial sector.