Featured Expert Contributor, Legal & Regulatory Challenges for Digital Assets
By Daniel S. Alter, a Shareholder in the New York, NY office of Murphy & McGonigle P.C.
Would-be custodians for cryptocurrencies and other digital assets seem very bullish these days. Mike Belshe, CEO of BitGo, Inc.—a leading developer of cryptocurrency security products that was recently approved by South Dakota to operate a state-chartered trust company—opined that “[c]ustody has been the missing piece of cryptocurrency market infrastructure and this gap has kept institutional investors out of the market.”
Market observers have echoed this view. A contributor to Forbes.com wrote, “The introduction of custodianship is expected to herald the entry of institutional capital into the industry, acting as the missing link investors and fund managers have been seeking for entrance into the crypto market.”