Dec 22 2022 3 mins
While seemingly counterintuitive to the ethos of blockchain and cryptocurrencies, enterprise custody solutions can serve a purpose for high-net-worth (HNW) individuals who prefer a third party to hold and maintain custody of their crypto assets.
Companies like Ledger, Kraken, and Coinbase offer custody services for HNW and Ultra-HNW individuals, estates, and companies. These solutions are generally cost-prohibitive for the average investor.
For many public figures within the crypto space, their mere participation in the industry can put a target on their back, as a would-be thief may assume that the individual has access to the location of their private keys or seed phrase.
The main advantage of these services is similar to that of a multisig wallet, as it removes a single point of failure in the event of a robbery or if the holder is taken hostage, with the ransomers demanding they turn over the keys to their crypto. The disadvantage is that you are again relying on the security protocols of a third party. Also, if you’re a crypto “whale,” hire bodyguards!