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digital
daily

digital daily: Custody

Balance. The downturn in digital asset markets will accelerate a regulatory land grab. Skepticism from the past is being replaced with a desire to bring digital assets into the mainstream. The \'travel rule\' around digital assets was recommended by the Financial Action Task Force and is the first regulation being implemented globally. It will have sweeping implications for infrastructure players such as custodians. Regional presence with local regulators will also matter. To appreciate these nuances, Paul Ebner hosted an enlightened discussion with George Bordianu, the co-Founder of Balance Custody. On the eve of Balance’s fifth anniversary, George guided the audience through the strategic steps that will allow his custodian to integrate into regulatory norms. It is a more deliberate, patient path aimed to be durable to expected future rules. It is also the cornerstone for institutional adoption – custody is king. George offered a twist on the adage \"not your keys, not your coins.\" Balance is built to provide definitive legal rights to assets held in custody: \"not your legal property, not your coins.\" What if the price of bitcoin declines in the years to come? George hammers to the heart of the matter. \"I don’t know if BTC will be headed much lower in the years to come (I certainly don’t believe it). I’ll tell you what will happen to our client’s assets: Nothing. They’ll remain unencumbered with the client’s title.\" Custody and digital banking are at the center of the regulatory mainstream. Balance, VersaBank, and bank-issued stablecoin will be fascinating to watch as the United States drags its feet on clear rules around digital banking. Global coordination and regional competition for market share is the name of the game. Regulatory uncertainty leaves private innovators with a delicate balancing act.

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