Crypto asset management

Jeremy's Research blog
2 min readFeb 27, 2022

In recent years, there has been a notable uptick in the number of companies moving to crypto. This is largely because of the many advantages that crypto has to offer businesses, including security, speed, and efficiency. However, one of the key challenges that companies face when moving to crypto is custody of their assets.

Custody is the process of securely holding and managing crypto assets. It is a critical component of any crypto-based business, as it ensures that the assets are safe and secure. Unfortunately, custody can be a complex and difficult process, especially for businesses that are new to crypto.

There are a number of different custody solutions available, each with its own advantages and disadvantages. Some of the most popular custody solutions include cold storage, hot storage, and custodial services.

Cold storage is the most common type of custody solution. It involves storing crypto assets in a secure offline environment, such as a cold storage wallet or a hardware wallet. This is considered to be the most secure way to store crypto assets, as it eliminates the risk of theft or loss.

Hot storage is a less secure but more convenient alternative to cold storage. It involves storing crypto assets online, which makes them accessible 24/7. However, this also increases the risk of theft or loss.

Custodial services are third-party services that offer custodial solutions for businesses. These services are often more secure than hot storage, but they can be expensive and time-consuming to set up.

When choosing a custody solution, businesses need to consider the security, convenience, and cost of each option. They also need to make sure that the solution is compatible with their specific crypto assets and needs.

The custody of crypto assets is a challenge that has yet to be fully solved. While there are a number of services that purport to offer safe storage of digital currencies, there is no one-size-fits-all solution. In addition, the security of these services can be compromised, as evidenced by the recent hack of a major crypto exchange.

One of the key issues with custody is that the security of digital currencies depends on the security of the underlying blockchain network. If the network is hacked or otherwise compromised, the cryptocurrencies held by the service may be lost. In addition, if the service is hacked, the user’s funds may be stolen.

Another issue with custody is that the rules and regulations governing digital currencies are still evolving. This can make it difficult for services to know how to safely store and protect cryptocurrencies. In addition, different countries may have different regulations governing digital currencies, which can create jurisdictional challenges for services.

Finally, there is the issue of trust. Many users are reluctant to trust third-party services with their cryptocurrencies, and prefer to store them themselves. This can create a security risk, as digital currencies are often targeted by hackers.

Jeremy's Research blog

Quantum computing researcher, hiker, dog lover, intense gamer, artist and writer. I like writing SciFi hard science, and horror fiction..