While some experts believe that self-guarding is one of the true purposes of cryptocurrency, this method of storing coins is not really suitable for everyone, according to a WisdomTree executive.
Will Beck, Head of Digital Assets at WisdomTree, an asset manager in New York, believes that self-booking will be an increasing trend in the future, but precautionary solutions should not be underestimated.
In an interview with Cointelegraph, the CEO said that some crypto users prefer self-custody, and WisdomTree supports and respects this decision. “This is going to be a growing segment of the market, and over time we want to build products and services for them,” he said.
Beck pointed out that self-custody requires some technical skills and the responsibility not to lose private keys, many may find the method of self-custody very uncomfortable or difficult to deal with.
“Of the billions and many institutional investors on the planet, a large number will lack the technical means, workflows or interest in owning their own keys, which presents a different set of complexities and risks,” said WisdomTree CEO.
According to Beck, well-regulated custodial solutions, including products such as crypto-exchange-traded products (ETP) or regulated custodians, can make crypto more accessible to a larger group of people. However, it requires vigilance and an understanding of what users are already involved in to avoid any risky activities with customer assets.
“If you are concerned about ‘not your keys – not your coins,’ you just have to understand who this company is, what their reputation is, how they are adopting regulation, or they are not embracing regulation,” Beck said. He added that self-booking has been trending in the community over the past few months as companies like crypto lender Celcius have been pausing withdrawals due to liquidity issues amid the massive crypto winter of 2022.
“They were doing incredibly risky things with these deposits,” Beck noted.
Related: Self-booking is key during tough market conditions: Here’s what the experts say
The recent comments by WisdomTree’s head of digital assets come amid the company’s debut of its custodian wallet solution, WisdomTree Prime. The platform aims to provide exposure to major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), as well as token versions of physical assets such as the US dollar and gold.
WisdomTree, one of the largest crypto-asset ETP providers, has launched eight crypto-asset ETPs on the Börse Xetra and SIX exchanges, the Swiss Stock Exchange, and the Euronext exchanges in Amsterdam and Paris. With the launch of WisdomTree Prime, the company expects to expand its operations beyond the ETP release. The wallet is currently in beta and is expected to be launched later in 2022.