What Are Cryptocurrency Custody Solutions?

Custody solutions are the latest innovation to come out of the cryptocurrency ecosystem. Their introduction is expected to herald the entry of institutional capital into the industry. Here is a brief primer on why crypto needs custody solutions, and the types of custody solutions being offered in the market. 

Why Does Crypto Need Custody Solutions? 

The main utility of cryptocurrency custody solutions lies in the safeguarding of cryptocurrency assets. Private keys, which are used to conduct transactions or access crypto holdings, are a complex combination of alphanumerics. They are extremely difficult to remember and can be stolen or hacked. Online wallets are a potential solution but recent events have demonstrated their susceptibility to hacks. The same is true of cryptocurrency exchanges. 

Other solutions include storing private keys offline, on paper or a hard disk (or other electronic equipment) that is not connected to the internet. But losing physical custody…