7 Bitcoin and crypto managers who facilitate institutional adoption of digital assets

Crypto-managers are one of the important pieces in the puzzle for mass institutional use of bitcoin (BTC) and other crypto assets. They enable investors to store their digital assets with regulated third-party custodian providers.

Read on to find a list of some of the leading providers of crypto depots.

What is a crypto manager?

A crypto depository recipient is a finance company that stores digital assets on behalf of investors.

Institutional investors are usually required to store their securities and assets with qualified custodians, which is why the introduction of cryptocurrency providers has been a game-changer for the institutionalization of bitcoin.

Professional and institutional investors generally prefer not to manage their own private keys to reduce the risk of loss of funds due to theft, operational errors or technical accidents.

Popular providers of crypto depots

Let’s now take a look at several leading providers of crypto repositories you can use to store your digital assets.

Anchorage

Anchorage is a full-service provider of financial platform and infrastructure for the digital assets area. Founded in 2017, Anchorage provides institutions with access to a variety of crypto services, including crypto storage, commerce, finance, staking and management services.

As the first federally chartered crypto bank in the United States, Anchorage forms a bridge between the more traditional banking system and the new digital assets area.

For their crypto deposit customers, an extra layer of security comes through insurance that protects the digital assets throughout their life cycle.

Baked

Heavily supported crypto platform Bakkt also offers crypto deposit services protected by insurance.

Bakkt protects its customers’ assets through an insurance policy of USD 125,000,000. This is an additional security measure for Bakkt Warehouse, which distributes online storage and the air gap offline digital asset storage. The company regularly rebalances between hot and cold storage to reduce the risk associated with hot storage.

Bakkt also has a mobile app that allows users to use BTC on everyday goods and services. The company has also collaborated with Mastercard to increase the supply and use of cryptocurrencies in the financial area, which has a great potential to bring more users into the cryptocurrency world.

BitGo

BitGo, founded in 2013, is a regulated trust company that acts as a cryptocurrency manager for individuals and institutions. The company manages up to 100 digital currencies and tokens as a certified custodian, and their customers have access to cold storage systems and configurable multi-user accounts.

In addition, BitGo performs regular audits of third party auditors.

In March 2021, BitGo received the NY Trust Charter from the New York State Department of Financial Services, which allows them to serve customers within New York’s regulatory charter.

Coinbase Custody

Coinbase is one of the largest crypto exchanges in the world, and this San Francisco-based company also runs a cryptocurrency service called Coinbase Custody.

In order for Coinbase Custody to be independent of Coinbase, it functions as an independent, independently capitalized business. It is recognized as a fiduciary under New York State Banking Law. The company segregates and holds customers’ digital assets and boasts military cold wallets that offer a high level of protection for crypto investors. Furthermore, the company has insurance coverage and regularly reviews financial and security audits of external companies.

Fidelity Digital Assets

Fidelity Digital Assets (FDAS) was started as part of Fidelity investmentwithout Blockchain Incubator. Fidelity Investments is known for being one of the world’s largest providers of financial services.

As a crypto depository recipient, FDAS began operating in 2018 to offer custodian and trading execution services. Their main target customers include institutions, hedge funds, market intermediaries and family offices.

FDAS has a New York Trust Charter and has been registered with UK Financial Conduct Authority to offer digital asset storage and trading operations in the UK.

Gemini Custody

Gemini Custody is a New York Trust Company founded in 2019 by crypto exchange The twins. It is a qualified custodian chartered by the New York State Department of Financial Services.

For the security of customers’ digital assets, Gemini secured $ 200 million in cold storage insurance, which they say is the largest insurance coverage purchased by any cryptocurrency in the world. The customer’s crypto is segregated using unique cryptocurrency addresses that are independently verifiable and verifiable.

Kingdom Trust

Kingdom Trust Custodial Services was founded in 2017 and offers custody options and solutions for individual and institutional customers. The company has a long history as a recognized financial custodian bank and is regulated by the South Dakota Banking Division.

Kingdom Trust offers three ways to manage and secure customers’ crypto: customers who have their own private keys using a digital tool provided by the company, have their crypto and digital assets in cold storage through a partnership with Fidelity Digital Assets, and lending or investing digital assets via Kingdom Depot accounts.
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Qualified custodians who offer digital assets custodian services play an integrated role in the institutionalization of the global crypto markets. The more comfortable institutional investors feel about holding crypto, the more likely they are to invest more in this new asset class.
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