Crypto Custody Services and Financing Options
Metaplanet Taps SBI VC Trade for Custody Services
Japanese investment adviser Metaplanet, which adopted bitcoin as a reserve asset earlier this year, has tapped SBI VC Trade to provide custody services.
Crypto exchange SBI VC Trade, a unit of Tokyo-based SBI Holdings, offers the potential to use BTC as collateral for financing, Metaplanet said on Monday.
Background
In May, Metaplanet said it was adopting bitcoin as a reserve asset to hedge against the volatility of the yen. As of August 20, it held 360.4 BTC ($21 million).
Reserve-Asset Strategy
The reserve-asset strategy mimics software developer MicroStrategy, which has been buying bitcoin since 2020 and now holds over 226,000 BTC, more than 1% of all the bitcoin that will ever exist.
Benefits of Custody Services
Custody services provide a secure and trusted way to store and manage digital assets, such as bitcoin. This is especially important for institutional investors and companies that want to maintain a long-term investment strategy.
Security
Custody services provide multiple layers of security to protect digital assets from theft, loss, or unauthorized access. This includes advanced security protocols, robust infrastructure, and regular audits and compliance checks.
Convenience
Custody services also provide convenience for institutional investors and companies, allowing them to focus on their core business activities while ensuring the safekeeping of their digital assets.
FAQs
What is custody services?
Custody services are a type of financial service that involves the safekeeping and management of digital assets, such as bitcoin. This includes storing, managing, and protecting the assets from theft, loss, or unauthorized access.
What are the benefits of custody services?
The benefits of custody services include security, convenience, and compliance. Custody services provide a secure and trusted way to store and manage digital assets, which is especially important for institutional investors and companies that want to maintain a long-term investment strategy.
How do custody services work?
Custody services work by providing a secure and trusted way to store and manage digital assets. This includes advanced security protocols, robust infrastructure, and regular audits and compliance checks.
What is the future of custody services?
The future of custody services is likely to involve the integration of blockchain technology and decentralized finance (DeFi). This could include the development of decentralized custody solutions and the use of smart contracts to automate custody processes.
Conclusion
In conclusion, custody services are an important aspect of the digital asset ecosystem, providing security, convenience, and compliance for institutional investors and companies. The adoption of bitcoin as a reserve asset and the use of custody services to store and manage digital assets are likely to become more widespread in the future, as the demand for digital assets continues to grow.
