As new regulations aimed at the crypto industry are being developed and implemented, it is crucial for institutions operating in this space to stay ahead of the curve and understand the implications of these changes. As the SEC’s latest discussion highlighted, the bar is consistently rising (and will continue to do so) to bring digital asset firms in line with traditional financial services obligations.
As a decision-maker, you understand the importance of staying ahead of the curve in the rapidly evolving world of financial services. While the end result of the evolving nature of digital asset regulations is still not completely clear, what is clear is the need to choose a future-proof custody solution.
For a solution to be future-proof, it needs to:
Here are are few aspects to look out for when choosing a self-custody solution:
Let’s have a look at each aspect.
Having an end-to-end solution is more than just a catchphrase. Assets constantly need to be transferred between the ‘cold’ vault and the ‘hot’ MPC, where the cold provides ultimate security and the hot provides the flexibility and agility required to transact across the blockchain.
An end-to-end solution often saves development resources, because there is no need to develop APIs or an end-point solution. In effect, with GK8, the institution enjoys the benefits of a holistic solution, which is also regulation ready.
In some jurisdictions, it is mandatory that the private keys – all parts/shards – never leave the country. In these cases, some cloud-based HSMs or MPCs may not comply with regulatory requirements. Having a solution that can be hosted partially (or wholly on-prem) is the best choice.
Given the changing nature of the regulatory landscape – only a solution that allows you the choice of how and where to host and a dedicated environment can be deemed future-proof. GK8 gives organizations multiple deployment options. For more information, read this article.
As we know, the digital asset sphere is consistently changing with hundreds of new projects, currencies, and tokens being launched yearly. The currencies you support today may, or may not, be reflective of your choices in the future. The same can be said for which smart contracts and DeFi platforms you interact with.
That is why we believe that only solutions that have universal support for industry-recognized standards and basics can be truly future-proof. For more information, click here.
This capability solves one of the core bottlenecks institutions have – staying up to date. With ‘out of the box’ support for EVMs, ERC standards, and smart contracts, GK8 ensures our clients stay ahead of the curve with zero time to market.
A good policy engine, allows you to tailor approval policies and configure a list of rules that affect how transactions are handled. It defines when a transaction is blocked, approved, or requires additional approvers using various filters such as account, destination, asset, initiator, and amount.
In a future-proof solution, look for a policy engine that is: adaptable, self-serve, and stored securely with a strong quorum approval scheme. GK8’s policy engine provides the granularity and flexibility large financial organizations require. Enabling institutions to manage their crypto workflows as they would their fiat. Read this, for more information.
The blockchain ecosystem is changing constantly. No one player can consistently adapt or envisage all the changes to come. That is why integrations and a strong partner network, will help keep you ahead of the curve.
GK8’s partner network enables institutions seamless access (direct from the GK8 platform) to a variety of blockchain-based services – whether for their own use or as a service to offer their end customers. For some examples read here and here.
The insurance of your digital assets is likely to be required across all jurisdictions. However, it is also a good business practice that provides a financial safeguard and peace of mind. Insurance offered by custody technology vendors has traditionally been relatively limited. In most cases, clients have access to pooled insurance (split among all customers) of $30-40 Million.
GK8 partners with some of the world’s most reputable insurance brokers. Through these collaborations, GK8 offers customers the ability to access the highest insurance coverage cap for digital assets (up to $1 Billion per vault). To learn more about this topic click here.
Last, but not least, are the reporting capabilities of the system and the ability to provide Proof of Reserves (PoR) and independent account attestation. Given the events of 2022, customers and investors alike are looking to ensure that what they are being told about their balance is indeed true. To learn more about the independent balance attestation solution GK8 offers customers, with the backing of 1 of the big 4, here is a link.
At GK8, we understand the challenges of managing your own digital assets and have developed a flexible self-custody solution tailored to the needs of large financial institutions. Our solution offers a self-serve policy engine, robust reporting features, integrated AML/KYC functionality, and enterprise-grade capabilities to future-proof your choice of self-custody technology.
How does GK8 rate on the list of 7 attributes? An impressive 7 out of 7!
We believe in building a solution that will stand the test of time. One that will empower our customers to excel in the ever-changing regulatory landscape. Just as important, is to enable our customers to remain self-sufficient – giving them all the ingredients and capabilities they need to succeed.
Want to learn more? Contact us today.