We are fluent in bringing certainty and direction to the liminal space of transition and growth

Liminal Strategy

Purchasing a company for a merger and acquisition (M&A) or executing a general business transition plan requires specific strategies and collaborations. Technological aids can prevent productivity upsets and demotivating obstacles, ensuring a smooth transition. They will detail every step of the journey and note who is responsible for which deliverables. Consistent tech practices will accelerate and simplify even the most complex plan. These are the best business transition strategies for leaders seeking to rise among their sector’s forerunners by leveraging tech. 1. Use Data to Evaluate Role Responsibilities A business could transition because of an M&A or a change in leadership. Role responsibilities might evolve or job titles might absorb others, no matter the motivation. Simultaneously, workers may have been performing tasks outside their job descriptions, and the transition team must know precisely what departments and individuals are responsible for what. Data will guide the transition team to create a clarified role structure and hierarchy. It will exhibit the ideal vision of performance alongside the knowledge of how workers execute their tasks. It’s essential to meld these perspectives because they don’t always coincide. Data and interviews can reveal how tasks have or haven’t been balanced on existing structures and who has shouldered more than they were initially assigned. All original responsibilities, even the ones of incumbent managers, should be recorded, assuming those tasks will transition to the successor. The shift may inspire successors to rewrite everything, but the foundation for how the business runs is there for revisions if desired. It saves time as opposed to generating procedures from scratch, especially if newcomers or additional managerial staff are oblivious to prior business practices. 2. Establish a Hub for Seamless Communications Employee and relationship management software about the business transition plan. A pillar of collected resources and contacts is vital for seamless communications and updates. Here are some of the benefits of having software or systems where the strategies exist: can centralize all the information Real-time communication Project management content and task assignments Localized data access Automated notifications of changes or deadlines Cloud storage and remote access leveraging Authentication and verification measures with encryption and signatures Checklists and progress percentages Communicates with third parties and vendors A hub also eliminates unnecessarily complex app stacks that confuse and bog down internal staff and third parties. It might become challenging to find answers or updates if data silos are in multiple hands and vendors don’t use the same applications as the transitioning company. It’s confusing for everyone involved when alerts come in from several sources, and it’s impossible to determine the scale of importance when information isn’t cohesive. 3. Automate and Analyze Established Governance Transitions are some of the most delicate times for companies, and having a straightforward, easy-to-navigate governance process will quell fears from every side about risk management and control. Shareholders must and sound and that the business transition won’t affect their funds. Tech can produce more accurate data points and determinations than humans in most cases, making the argument less prone to holes. see that their investments are safe Tech can assist with keeping these processes transparent and developing as needs change and phases of the process unfold. Governance templates could outline previously undefined structures, clarifying a nebulous hierarchy and yielding even more discovery. Who is responsible for the planning committee or strategic business alignment, especially when purchasing a company? Digital , and tech assets can accelerate document efficiency and distribution. Transitions require administrative staff to file numerous reports, and delivering them to the right places is more accessible with tech assistance. Visibility equals a high-value governance portfolio with data-driven insights ensuring a smooth transition. transformation requires process governance 4. Find Tech Solutions to Quell Fear Most workers leading the switch will be stressed until the process is complete. Therefore, teams must identify the top pain points and consider technological aids to alleviate those burdens as much as possible. Here are some of that pop up during a business transitional period: the most notable questions Will the switch cause the company to lose profits or be less successful? Could the attempt of a business transition force more work for existing employees when they already feel overworked? Will co-workers lose company loyalty and leave because of changes outside their control? Will someone be able to run the business in the same way or better than the current administration? What do some of these tech solutions look like? Predictive analysis with AI can provide potential projections based on historical earnings for those concerned about profits. Automated employee surveys obtain feedback and suggestions for a transition that keeps the company committing to and exceeding expectations. 5. Enlist Cybersecurity Experts Everything from employee accounts and credentials to financial data is in a liminal space during a business transition. The transference of sensitive information gives hackers more surface area to extricate or compromise. There is always a risk when moving, so or outsourcing professional assistance will secure information and employee well-being. ramping up internal cybersecurity efforts A transition can instigate other opportunities to employ technological assistance like artificial intelligence, automation or new authentication measures to perform a security reset. All staff should remain aware of how the change impacts their data security. Education will be the best defense mechanism against potential threats — especially when human error is the top cause of cybersecurity breaches. These additional cybersecurity measures should be part of business transition strategies: Resetting all passwords Minimizing data Performing data backups Transitioning to the cloud Planning penetration testing and vulnerability scans Updating software and hardware from outdated legacy versions Obtaining audits or consultancy for security compliance Reviewing cybersecurity third parties for updated protection practices Forge a Business Transition Plan With Tech Assistance Tech can make even the most monumental business transition simpler. It can ease the staff’s concerns and give successors every piece of information they need in a gradual and manageable timeline. Smart implementation and execution can ensure a smooth transition regardless of how long the to-do list seems. Workforces will have security, and profits will continue to have a positive outlook because the change will signify a brighter future for everyone involved.

5 Tech Best Practices for Smooth Business Transition

Cultural don, Victoria Stoyanova, said she wanted to celebrate the creative ways of others. She was challenged by a friend on the spot: stop talking and start doing. Not a pushover, Stoyanova rose to the occasion and ten days later was born. Conversations with her guests on the podcast series are raw. She digs into the ‘ ’. These themes have become increasingly potent in today’s attention economy — , can be testing. The Work We Do practices, journeys and rituals of professionals that can’t stand still where finding space to be, and be your best Here are just a few anecdotes that might help: Nurturing a Kaleidoscope Career Image via Victoria Stoyanova Stoyanova is a Bulgarian born, London anchored globetrotter, who sees the world through multidimensional lenses. It’s what allows her to dub herself a community architect and more importantly do the meaningful work that actually entails: building resilient ecosystems at scale. She’s done so for many organisations before and now directs her energy cultivating the on the planet. If it all sounds complex, it’s precisely because it is. l argest creative community She explains that like a kaleidoscope, there are many facets to today’s professionals. Or rather today’s professionals have many professions. Each worker brings an amalgamation of his views, skills, practices, experiences and networks. Every layer meshes into the other, stacking up in a unique way for each engagement. It’s this modularity that enables those perched on the threshold, in a , to do what they do so well. liminal space With an uncanny ability to weather transitions, every new challenge provides another chance to flex current abilities and master new ones. Taking a Bias Towards Action Image via Stanford d.School “It’s easier to act your way into new ways of thinking rather than think your way into a new way of acting.” So goes the saying according to Jerry Sternin, the father of . Today, the cost can be extremely high in delaying. Launching and improving is the winning strategy in our networked economy. positive deviance In their book , Joi Ito and Jeff Howe explain that, “Businesses commonly regard ‘failure’ as a bargain-priced learning opportunity.” When change is accelerating at unparalleled speeds and everyone around you is busy ‘doing things’ — it’s easy to feel like a bystander. Fear not, as the real benefit to doing is learning. As Ito, himself a College dropout, and now director of MIT’s Media Lab asserts, Whiplash “Education is what other people do to you. Learning is what you do to yourself.” Stoyanova could just have easily talked about the podcast for months, instead she grabbed a microphone and hit record. Not only is she learning more every episode, thankfully so are we. Rehearsing your Rhythms and Rituals Image via Vinyana There’s a movement brewing of those who’ve mastered how to seamlessly switch-on for and just as easily switch-off. Computer scientist Cal Newport labels it working in ‘batches’. Like a surfer who navigates a set of waves with intense focus and explosive force, today’s knowledge worker must crack how to do with precise cognitive ability. bursts of work deep work Flow, which holds a purpose in itself, once sat quaintly with the likes of artists and athletes. It has since seeped into the information economy. As long as the connected world and complementary tools permit, those who work with knowledge can discover their groove. Although philosopher Barbara Gail recently — being in flow is not mutually exclusive with optimal performance. Indeed, finding flow and doing great work are natural bedfellows. This is not backed up by any quantitative research, rather it’s just what I believe. A very simplified equation could look something like this: posited against flow But even more pressing than finding (this seemingly illusive) equation is that enemy lurking in the shadows. Our good friend technology — rather paradoxically — enables these new ways of working and simultaneously acts as the great detractor. As Alain de Botton warns us: “The more embarrassing and self-indulgent challenges of our time...is the task of relearning how to concentrate. The past decade has seen an unparalleled assault on our capacity to fix our minds steadily on anything. To sit still and think, without succumbing to an anxious reach for a machine, has become almost impossible.” In response to the constant digital noise, some individuals temporarily quit social media while others deliberately employ . extremely far out techniques Enjoying the Ride Image via Wikimedia Commons Taking time out has long been a proven means for boosting productivity and innovation. Designer Stefan Sagmeister religiously takes a one year sabbatical every 7 years and closes down his agency. He is convinced that in so doing, he fuels the creative and commercial success that his firm requires for the next six. We might not all have the luxury of closing shop for a year, but a workaround may be something much simpler; say a long walk. A dozen miles a day in the case of Charles Dickens may seem like slacking off today, but the virtues of leisure as it concerns knowledge work is . Writing, like many other creative pursuits, requires: focus, fluidity and (hopefully) fulfilment. scientifically sound British historian Simon Sebag Montefiore reveals: “The journey is everything — and for a writer, life and work are just a series of journeys that are often more important than whenever the hell we end up. The journey doesn’t have to be geographic but a voyage of the heart, soul and brain as well as the body. The journey of the soul is about inspiration; that of the heart is about love; that of the body is about movement and geography but also the senses, the smells and tastes; and that of the brain is about the study of new knowledge. But every stage of my life is divided into a new journey, subject, project and it’s the sense of movement and novelty that is essential.” Much like Stoyanova, people all over the world are embracing exciting new ways of working. With awareness and abundance they awaken a sense of what is possible. Their dirty little secret: it’s not about the destination but the glory of the ride. Eavesdrop on my chat with Stoyanova here… If you enjoyed this article please share the love and give it a clap or two :)

There’s Nothing Like a Juicy Bet

The blockchain realm has come a long way since its humble beginnings with the introduction of Bitcoin. Although ambitious, blockchain technology served the simple purpose of holding and transacting value online back in the day. Nevertheless, its potential developed with Ethereum’s deployment—thanks to smart contracts that let developers build any financial use case they wanted, underpinned by blockchain’s benefits. As this technology continues to revolutionize finance and any industry it touches, (Real World Assets) are a new blockchain-based utility holding promising capabilities. Those capabilities will transform how assets are dealt with in the real world by tokenizing and migrating them to blockchain networks. RWAs are essentially blockchain manifestations of tangible and intangible assets like real-estate properties, securities, gaming assets, and many more. RWAs Everything will be tokenized and connected by a blockchain one day. Fred Ehrsam So, digital asset tokenization can encompass all the world’s assets to provide the advantages of blockchain, effectively removing the obsolete processes endured while interacting with them. A Look at Digital Asset Tokenization The relevance of blockchain technology is understood far and wide. Blockchain networks are decentralized ledgers that breed transparency, immutability, and openness. The most popular blockchain application, cryptocurrency, is widely used thanks to said properties. In fact, cryptocurrency has long been an alternative to traditional financial assets and the financial system surrounding those assets due to its underlying properties. However, that does not limit blockchain advantages from being rubbed off on traditional assets. to bring them on-chain for benefits that are not available off-chain. If anything, tokenization has been at the forefront of blockchain trends in one way or the other. The NFT mania saw prominent artists taking their work on-chain as tokenized representations. Tokenization is the gateway Logically, other assets holding value because of their uniqueness, like collectibles, or those that are not interchangeable, like real estate, can be tokenized. While those comprise non-fungible assets, fungible assets, like securities and commodities, can also be taken on-chain. The ability of blockchain to represent any asset can fundamentally transform how RWAs get transacted and everything associated with transacting them. The Benefits of Digital Asset Tokenization Think of how cryptocurrency eliminated the need for third parties to make payments. The results were low transaction fees, fast transaction speeds, and a trustless, transparent infrastructure. Users were able to move away from archaic centralized infrastructures that lacked transparency and were prone to fraud. Tokenization Breeds Low Costs, Control, and Transparency for Users Tokenizing assets on the blockchain brings users the same advantages. Tokenized assets ensure lesser dependency on centralized intermediaries, if not complete independence from them. With that, transacting RWAs like real estate, financial instruments, art, and more on-chain is less expensive, thanks to the absence of administrative costs spent on third parties. Taking assets on-chain also offers holders more control. The assets are linked to their crypto wallets, enabling them to transact with wallets around the globe at any time. The cryptographic security protection of transactions far outweighs traditional security measures, allowing blockchain users to rise over issues like forgeries. Simultaneously, transactions recorded on blockchains are tamper-proof for everyone to see and offer total transparency- thanks to cryptography again. Anyone can check asset flows and track the returns generated by said assets, keeping fraudulent practices at bay. Moreover, blockchain transparency and smart contract innovation allow for proving provenance. Buyers can verify if they are acquiring assets from legitimate counterparties. Everything on the blockchain is verifiable – users can transact objectively based on thorough due diligence rather than placing trust in others and hoping for the best. Onboarding Assets On-Chain Enhances Their Accessibility and Liquidity Beyond that, tokenized assets are very accessible. On-chain versions of traditional assets can easily be bought, sold, and traded worldwide. The reduction in fees and excessive third-party interference alongside simple cross-border transacting capabilities opens the floodgates to counterparties not interested in dealing with the assets through traditional channels. High costs and third-party permission often prevent them from conveniently indulging in off-chain assets. The increased accessibility with tokenized assets even paves the way for increased liquidity. RWAs can be listed across popular exchange platforms, letting interested buyers effortlessly grab them. That shifts the interaction with traditional assets from siloed, centralized environments to on-chain interoperable infrastructure. The result is open access to on-chain versions of the assets and their effortless movement across crypto wallets. Moreover, tokenization allows the fractionalized ownership of on-chain assets, meaning RWAs are purchasable in smaller parts. It presents possibilities like owning fragments of assets that are usually not divisible. Simply put, tokenization lets buyers with lighter wallets acquire fractions of assets that are hard to sell wholly, making illiquid ones easier to trade and sell. Ergo, taking assets on-chain significantly bolsters their liquidity. With tokenization, something like a rare watch can be represented on-chain and divided into thousands of tokens. Interested parties can thus snap up any number of tokens they like, one, a thousand, or anything between and beyond, and expect their value to grow proportionally to their stake in the watch. Therefore, on-chain tokenization enhances liquidity with all kinds of assets, reducing the volatility of their prices and eventually stabilizing markets. Integrating Traditional Assets into DeFi But why stop there? Blockchain technology is known for revolutionizing the financial landscape. Nothing aided that more than DeFi (Decentralized Finance), a subset of finance originating from blockchain technology. Tokenizing traditional assets makes it possible to take them to the DeFi ecosystem, giving rise to innumerable opportunities. RWAs can be utilized as collateral on borrowing protocols, locked in staking pools and yield farms for profits, and traded seamlessly on DEXs (Decentralized Exchanges). The possibilities are endless as the DeFi ecosystem is highly versatile and often leads to new developments. RWAs can inspire a new direction for DeFi, pushing developers to create protocols mirroring real-world use cases and entirely novel ones not conceptualized yet. DeFi’s composability will allow users to extract maximum value from traditional assets like never before. Tapping into capital-efficient applications at various layers and compounding returns with every layer from a single investment can now be imagined. Custodians to Shape the Safe Utilization of Tokenized Digital Assets With all the advantages RWAs bring over traditional asset types, encouraging users to jump into the blockchain realm requires solutions that make using the assets safe and secure. Institutional investors and enterprises wanting to deal with immense RWA liquidity need custody solutions mirroring traditional custodians. Self-storage wallets work for retail investors dealing with smaller asset values. But think of those storing and often moving massive amounts of tokens between DeFi strategies, effecting trades between various wallets, and handling RWAs on behalf of clients by overseeing numerous withdrawal and deposit requests. solutions will ensure institutional-grade security, protecting and easing the transition to using blockchain-based RWAs. Custody platforms have transformed how enterprises deal with digital assets like cryptocurrencies and NFTs and can easily accommodate RWAs. In fact, licensed custody platforms are why trust has returned to the centralized parts of the crypto ecosystem. Digital asset custody With digital asset custodians, big-ticket RWA utilities will experience the same levels of security as their non-tokenized versions in traditional finance. Thanks to the high-level security protocols and MPC wallet (Multi-Party Computation) devices used by custodians to store RWAs, worries of hacks and exploits when using blockchain-based value are no longer relevant. They also make moving assets between storage systems and external wallets highly convenient. Digital asset transfers can become complex due to the various parts of enterprise storage systems. However, top custodians like Anchorage and Liminal merge the efficiency needed to carry out enterprise functions with digital assets, with highly secure storage and transfer capabilities. Digital Asset Tokenization Is on the Way to Becoming Web3’s Biggest Utility, Soon Digital asset tokenization holds the potential to metamorphose traditional finance. It is envisioned to become Web3’s biggest use case by value by bringing trillions of dollars worth of assets into the blockchain ecosystem. No assets are exempt from the revolution as everything can be tokenized into RWAs to benefit from blockchain-based tenets like decentralization, transparency, and openness. A well-established digital asset custody vertical will immediately help onboard large-scale users. What was once an alternative to the traditional financial system now encompasses it to offer the world revolutionary utility. Diving into the blockchain and Web3 ecosystem has never been this interesting.

Digital Asset Custodians: Their Impact On Digital Asset Tokenization

The digital asset industry is not one that is stagnant. Beyond the perennial excitement induced among enthusiasts and users due to the volatile price movements of the assets, the industry is no stranger to eventful occurrences. Most recently, the US SEC (Securities and Exchange Commission) approved the issuance of Bitcoin ETFs (Exchange Traded Funds) for a handful of prominent asset management and financial services companies. The move pushes the crypto industry towards institutionalization, with multiple jurisdictions worldwide already regulating or working on implementing regulations for all kinds of digital assets beyond Bitcoin. As the industry matures and the innovation evoked by the asset class attracts retail and institutional investors alike, its institutionalization is the only logical step ahead. The Good Comes with the Bad – Still, the Industry Grows Beyond those desired happenings, the industry has also been prone to setbacks. For example, the recent Binance debacle saw the company shelling out over due to its negligence in reporting and preventing transactions serving money laundering. Another example is the infamous that led to collective losses in the billions for crypto users due to the blatant mismanagement of funds. $4 billion in fines FTX saga Regulations will ensure such failures do not occur, keeping digital asset investors and users safe from untoward incidents. Nevertheless, despite the setbacks, the development of innovative products from this space remains strong. Digital assets, alongside a vibrant DeFi ecosystem and robust centralized platforms offering asset storage and exchange activities, among others, are booming. Family Offices Are Showing Unwavering Interest in Digital Assets A rapidly evolving digital asset industry is witnessing massive influxes of funds, now more than ever. With the capabilities it offers to build massive wealth and regulatory perceptions shifting towards the positive, one group of investors flocking to the ecosystem is family offices. Servicing HNWIs (High Net Worth Individuals) and wealthy families to build and maintain generational wealth, family offices are diversifying investment strategies to accommodate digital assets. However, their entry into the crypto markets should occur with the assistance of platforms specializing in handling the large value they pour into these assets. Family offices must turn to working to safeguard users’ assets from the various elements in the ecosystem that can lead to their loss or theft. digital asset custodians Custodians Make Digital Asset Usage Safe and Convenient for Family Offices In fact, jurisdictions rolling out regulations for the asset class are mandating the usage of licensed custodians while dealing with large amounts of assets. And that is for good reason. For one, self-custody wallets aimed to secure digital assets are a good choice for retail users dealing with less significant amounts. On the other hand, interacting with such assets in the millions of dollars, as family offices do, can be inconvenient and dangerous when using self-custody storage solutions. The chances of losing private keys and having assets worth millions trapped forever are more common than assumed and obviously not ideal. Turning to experienced custodians, like BitGo, Liminal, and Copper, is the best way for family offices to go. These custodians offer the perfect balance of security and convenience that they can ask for. Licensed custodians utilize state-of-the-art asset storage and data transfer infrastructure, ensuring the digital assets they handle remain safe. Hot and cold wallets protected by Multi-Signature and are commonplace with custodians, alongside infosec certifications attesting to their robust infrastructure. MPC (Multi-Party Computation) technology Increased Access to the DeFi Ecosystem Through Custody Platforms By turning to custodians, can stay assured they possess instant access to their assets, overseen by bank-grade storage security. Of course, asset storage is only one aspect of custodian offerings. Custodian platforms also come equipped to let their users indulge in DeFi strategies across various blockchain networks – all from their platform interfaces. family offices With the DeFi ecosystem being one of the most prominent use cases of digital assets, family offices naturally utilize the assets under their management to earn steady passive income. So, family offices can indulge in multichain DeFi ecosystems, purchasing all kinds of tokens to put to work in applications deployed on prominent blockchains from well-known third-party custody platforms. Custodian Insurance Removes All Worries of Dealing with Third Parties While relying on third parties to hold crypto assets can seem daunting, especially when blockchain tenets dictate doing away with intermediaries, reputed custodians bring unfaltering trust. It is so because licensed custodians come insured to protect their users from worst-case scenarios like hacks, exploits, and bankruptcies. Family offices can confidently employ custodians, knowing their value is recoverable through insurance despite losses incurred due to negligence or bad behavior exhibited by custodians. Reputed Custodians Uphold Compliance Even for Their Clients Numerous jurisdictions with established digital asset regulations enforce insurance on custodians to safeguard investors. They also enforce AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) protocols upon these platforms, which is a need in the digital asset ecosystem. Such protocols prevent family offices from accidentally indulging in prohibited tokens like privacy coins and interacting with sanctioned wallets linked with illicit activities. Tapping into custody services can make sure family offices remain within legal bounds and do not have their operations, funds, and investments jeopardized. Likewise, custodians can even effect good behavior among family offices, mainly multi-family offices handling investments for multiple HNWIs and families. This type of family office is operated by third parties, rather than the traditional single-family office set up and controlled by HNWIs or families themselves. Most jurisdictions have lax regulations over family offices, meaning the clients of multi-family offices will find their value at risk if the third parties misappropriate said value. Custodians storing end of such offices are mandated to track and report suspicious movements of funds by regulators. client digital assets on behalf Malicious activity can easily be detectable when huge sums are misused, protecting investors from bad actors. Thereby, custodians offer a layer of transparency and accountability. Multi-family offices looking to increase their credibility with end clients interested in digital assets must employ custodians. Custody Solutions Are a Necessity for Crypto-Inclined Family Offices Digital asset adoption is in full swing as investors turn to the asset type and the innovative products it is central to. Family offices are the same as these assets, as they have shown their ability to steadily bring returns that magnify wealth, often more effectively than traditional assets. As they take a more influential place in the portfolios of HNWIs and wealthy families, custodians can help alleviate the issues with handling them. Thus, family offices should consider custody-related solutions to traverse the while making the most out of the novel financial system. digital asset landscape securely and conveniently

Why Family Offices Should Care About Digital Asset Custody

The blockchain ethos of the self-custody of digital assets remains relevant over a decade after the creation of Bitcoin in 2009. Numerous scams later, users at their receiving end get suggested to hold on to the keys that provide access to their coins and tokens. While that is the safest way to go, many users, especially institutional investors and enterprises, frequently transacting tremendous amounts of digital assets prefer third parties handling their value. The reasons for delegating the keys to third parties are manifold, with convenience being the frontrunner. While many have burnt their hands seeking convenience, relying on regulated, trustworthy custodians is the way to go. Activities like trading or running crypto-native enterprises benefit from the convenience engendered by custodians. The Issues Relevant to The Digital Asset Custody Landscape in the Past The issue, however, has been safety. The custody of digital assets has had no regulatory directives until recently, thus leaving safeguarding assets to enterprises operating conflicting verticals and not possessing the right capabilities. For a long time, crypto exchanges and other crypto enterprises offered custody services. However, such enterprises would also be involved in profit-generation activities like lending and investing with their own assets and portfolios. Without adequate regulations, some of these without the knowledge of their users. enterprises decided to hypothecate their user assets in risky strategies Such activities are a big no-no as user-deposited assets must never get comingled with enterprise profit-generation activities. The assets must remain in safe storage so the enterprises can honor all their user withdrawals simultaneously, preventing runs. In fact, many enterprises lost the assets they held on behalf of their users due to the strategies they indulged in going bust, leading to bankruptcies and causing their users to wave goodbye to their entrusted assets forever. Thus, digital asset users relying on third-party custody were at the losing end in the past. However, with growing awareness about such instances and regulatory entrance into the industry in various jurisdictions, third-party custody of assets is being done right. Custody services now offer adequate safety and convenience to those who do not want to manage their crypto holdings themselves. The Revival of the Custody Markets and Its Reasons The TradFi world has operated with third-party custodians for decades and proved that regulations and controls can, in fact, offer tremendous amounts of safety and let enterprises and investors conduct their activities with ease. The digital asset sector is no different. Some of the industry’s top custodians have operated honestly through their long tenures, and their users can attest to this fact. With regulations, many are implementing TradFi-like systems. Those in jurisdictions with no digital asset regulations are still following global regulatory trends to offer nothing but the best to their clients. A common trait with regulation-oriented custodians is that they do not operate verticals other than safeguarding user assets. That is what TradFi regulations have directed custodians to do for decades. With crypto regulations bringing the same dictates, users can know their assets are protected. The regulations discourage custodians from operating conflicting verticals and require them to maintain transparency with their regulators and get insured. Such requirements provide levels of . Custodian wrongdoings are identifiable from the get-go and can get nipped in the bud. safety that mirror the self-custody of assets Moreover, users can stay assured that their assets are always accessible, even during calamities like custodian bankruptcies and losses to hacks and thefts. Custodian insurance enables users to reclaim their assets, moving them away from third-party risks. What Can Be Expected by 2030 With that, many users have already begun using third-party digital asset custodians in droves. 2022 was a great year to be in the custody business, despite all the commotion in the crypto markets due to failing projects, lack of controls implemented by top exchanges, hacks, and a persisting bear market. The , showing the interest many digital asset users possess in trustworthy custody services. market size of crypto custodians rose to a whopping $447.9 billion While that is just the beginning, the digital asset custody market is set to rise at a CAGR (compounded annual growth rate) of 23.65%, taking its market size to $1.6 trillion by 2028 and closer to $2 trillion by 2030. The projection comes from a recent Proficient Markets Insight report that shines a light on digital asset custody usage. It includes various market segmentations of the digital asset custody landscape, like custody types, regions, industries, and custodians. The Custodians Enriching the Digital Asset Custody Market The data from the segmentations all point to one thing – burgeoning institutional interest in the digital asset ecosystem, with custodians providing the safety checks they need. While several custodians operate in the industry, a few dominate the markets thanks to the trust they have built over the years and the features they provide. Coinbase Custody Coinbase, as an entity, offers more than just its popular exchange service. Its custody service is one of the industry’s most trusted, with the company maintaining adequate controls to prevent the intermingling of user-stored assets with its other verticals. Its services are licensed by the New York State Department of Financial Services, a regulator known to enforce the most stringent checks before approving licenses to applicants. Resultingly, Coinbase Custody possesses $128 billion in AUM (assets under management), handing it the lion’s share of the industry’s assets under custody. Coinbase lets its users custody assets in its ‘Vault Storage’, a proprietary digital asset storage solution amalgamating the security of offline, cold wallets with MPC (multi-party computation) or MultiSig capabilities. The solution also addresses redundancies with and effortless integration of team members to access enterprise wallets and their contents. The features are usable through the platform’s intuitive dashboard. high levels of asset storage security by providing easy-to-use workflows Furthermore, Coinbase Custody supports 400+ assets, which users can use in activities like staking, lending, and DeFi yield generation right from the platform. Users utilizing its custody and allied offerings have their assets in storage insured by up to $350 million, ensuring they are protected when undue situations occur. BitGo Another massive player, BitGo, is a runner-up to Coinbase Custody in the custodian market share, with over $90 billion in AUM. The custodian opened its doors in 2013 and has remained a household name in the industry thanks to its efforts in securely storing its clients’ assets. Like Coinbase Custody, BitGo, too, is licensed by the New York State Department of Financial Services. The platform utilizes computational consensus for its wallets’ functioning, meaning users store their assets in cold storage, with its wallets configured with MPC or MultiSig setups. BitGo’s custody solutions let users tap into profits through staking, lending, DeFi, and other activities with their assets in storage. Furthermore, BitGo lets institutions and enterprises employ its custody services by harnessing its wallet-as-a-service (WaaS) offering, enabling the ventures to store assets by simply connecting to its APIs. There is no need for complex coding to utilize its WaaS application – convenient drag-and-drop capabilities allow users to integrate BitGo offerings into their workflows smoothly. The custodian lets users store over 600 digital asset types from multiple blockchains, protecting their deposits with insurance of up to $250 million. Also, users can utilize their funds from BitGo’s custody in various applications, similar to what Coinbase Custody provides, like staking, lending, and DeFi yield generation. Newer Custodians Look to Take the Reins of the Growing Markets While several more established digital asset custody providers exist, including famous TradFi banks like BNY Mellon, the crypto ecosystem is witnessing new names filling the increasing demand for custody services. These new entrants give established players a run for their money, offering highly secure storage facilities bolstered by state-of-the-art technologies to introduce additional layers of security and convenience. Liminal Custody Solutions Birthed in 2021, Liminal is creating bigger waves than any competitor recently entering the custody landscape. The custody service provider offers various banking-grade digital asset storage options to institutions and enterprises exclusively, making it an all-encompassing solution for the crypto ecosystem. To that end, the platform has grown to safeguard digital assets worth over $600 million in its short time here. Keeping in line with the secureness offered by the top players, Liminal utilizes MPC and MultiSig technologies to fortify asset storage in its wallets. The platform offers a range of custody solutions, comprising custodial cold and hot wallets, self-custody solutions, and business solutions like wallet infrastructures and white-label offerings. Moreover, Liminal also provides an exhaustive suite of integrations like an automation engine, firewall configuration, compliance checks, and DeFi connectivity at no extra cost. Liminal brings algorithmic capabilities to the asset storage and transaction processes, offering equal parts convenience and security. Zodia Custody Zodia Custody, the Standard Chartered and Northern Trust developed and owned digital asset custodian, represents the surging institutional interest in digital assets. The custody service began operations in 2020, with the TradFi heavyweights entering the digital asset space to facilitate safeguarding digital assets for their client bases interested in interacting with tokenized value. Like the other custodians, Zodia Custody utilizes the much-needed MPC and MultiSig technologies to safeguard digital assets for users. The custodian has the advantage of its parent companies originating from the banking sector, implementing multiple hardware security modules (HSMs) from the TradFi banking world. Also, Zodia Custody is licensed across multiple countries – the UK, Ireland, and Luxembourg, ensuring its dedication to providing banking-grade custody services. While that is already evident due to the companies responsible for its genesis, and convenience to institutions utilizing its services. the custodian takes all the steps needed to provide banking-level safety Its efforts materialize as insurance coverage for stored assets, secure and quick transaction settlements, and yield generation capabilities through staking integrations. Conclusion As custody requirements become more pronounced with evolving regulations and institutional entrance into the ecosystem, established and recently developed solutions will witness massive growth. As we move closer to 2030, the industry can expect a surge in new custodians that bring cutting-edge developments to offer the highest levels of security to digital asset storage.

LIMINAL STRATEGY

liminal.co

-- employees

Since n.d.

COMPANY RANKING

LIMINAL STRATEGY

EVERGREEN INDEX #6934

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LIMINAL STRATEGY

liminal.co

-- employees

Since n.d.

COMPANY RANKING

LIMINAL STRATEGY

EVERGREEN INDEX #6934

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STORIES ABOUT LIMINAL STRATEGY

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