Is custody the future of crypto? OpimasLLC CEO OmMarenzi discusses why big crypto players like Fidelity BNYMellon may stand to benefit from the collapse of FTX_official. _franvela reports
Marenzi said that smaller crypto-native custody services players like Coinbase , on the other hand, may fall short of gaining institutional interest.
“Someone like Coinbase is simply not large enough to gain the faith and trust of very large asset managers and traders who are looking to be active in the space,” Marenzi said, adding that institutional investors, worried about whether their funds are securely stowed away, could be “scared away” for some time, even months.
“They’re going to be very careful about the contracts they sign and what they feel their custodian or the person holding their bitcoin is doing with it,” Marenzi said in reference to the way FTX was operating.For the majority of investors, including long and short term asset managers, being an investor in a fund that has “extreme leverage,” may not be that “exciting” in the long term, according to Marenzi.
“[Investors] are going to want to know exactly what happens to my assets when you're holding on to them. Do you lend them out? Are you fully reserved, are you not fully reserved?,” Marenzi said.
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