Institutional investing is entering the world of cryptocurrencies, most notably the non-fungible token (NFT) scene. In response to this influx, MetaMask Institutional has announced a new addition to its custodial offering for institutional-grade clients.
MetaMask’s partnership with storage and management service NFT Cobo aims to create a “one-stop platform” for large enterprises managing digital assets.
Although MetaMask is a non-custodial wallet at its average user level, the institutional branch of the wallet has adopted custodial partnerships in various countries around the world.
Tavia Wong, director of marketing and business development at Cobo, told Cointelegraph that not only does custody provide asset protection, but for institutions in particular, custody becomes useful at an administrative level.
“Due to high levels of users and different authorization levels, institutions need additional functionality to avoid internal failures and the consequences of negligence.”
While wallets like MetaMask were not considered “user friendly” in the past, this addition to escrow offerings prioritizes usability for large investors.
The new integration allows institutional customers to designate cross-company roles as well as internal collaboration tools. According to Wong, this allows users to limit purchases, operations and sales as authorized by the administrator.
“With multisig access, it is guaranteed that no single entity will be able to control all assets, eliminating any single point of failure.”
However, the debate between noncustodial and custodial wallets continues.
With many in the space touting the slogan “it’s not your keys, it’s not your coins”, non-custodial wallets are often sought after for added security and financial autonomy.
However, as mainstream users continue to enter the space without a technical background, custodial wallets often provide a friendlier environment. Some users even refute the aforementioned slogan in favor of greater accessibility to facilitate adoption:
“not your keys, not your crypto” is short-sighted, narrow-minded, and impractical.
if we don’t create solutions that welcome *everyone* into crypto, then it won’t be *anyone’s* crypto…because it will fall irrelevant to the annals of history.
— Chris Maddern (@chrismaddern) September 27, 2022
Traditional financial giants such as Societe Generale, one of Europe’s largest investment banks, have recently opened up crypto asset management services to facilitate entry for their clients.
The Nasdaq also announced on September 20 that it would offer crypto custodial services.
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