MetaMask adopts custody functions for NFT-hungry institutional investors
Institutional investment is pouring into the crypto world, especially the non-fungible token (NFT) scene. In response to the influx, MetaMask Institutional announced yet another addition to its custodial services offerings for institutional-level clients.
MetaMask’s partnership with NFT management and storage service Cobo aims to create a “one-stop platform” for large companies dealing with 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 for Cobo, told Cointelegraph that not only does escrow provide asset protection, but for institutions specifically, escrow becomes useful at an administrative level.
“Due to the high level of users and different levels of trust, institutions require additional functions to avoid internal errors and the consequences of negligence.”
While wallets like MetaMask have not been considered “user friendly” in the past, this addition to custodial offerings prioritizes ease of use for large investors.
Related: Institutional Crypto Custody: How Banks House Digital Assets
The new integration allows institutional customers to designate roles within the company along with internal collaboration tools. According to Wong, this allows user limits for buying, trading and selling as allowed by the administrator.
“With multisig access, it ensures that no single entity will be able to control all assets, removing a single point of failure.”
The debate between non-custodial and custodial wallets still rages, however.
With many in the room touting the slogan “not your keys; not your coins,” non-custodial wallets are often seen for more security and financial autonomy.
However, as casual users continue to enter the space without a technical background, custodial wallets often offer a more user-friendly environment. Some users even refute the aforementioned slogan in favor of greater accessibility for easy adoption:
“not your keys, not your crypto” is short-sighted, narrow-minded and impractical.
if we don’t create solutions that welcome *everyone* to crypto, it won’t be *everyone’s* crypto… because it will fade into the annals of history.
— Chris Maddern (@chrismaddern) 27 September 2022
Traditional financial giants such as Société Générale, one of the largest investment banks in Europe, recently opened up crypto-asset management services to give clients an easy ride.
Nasdaq also announced on September 20 that it will offer crypto custody services.
