{"id":462096,"date":"2024-09-23T19:14:27","date_gmt":"2024-09-23T19:14:27","guid":{"rendered":"https:\/\/www.crypto-news-flash.com\/?p=856357"},"modified":"2024-09-23T19:14:27","modified_gmt":"2024-09-23T19:14:27","slug":"kpmg-calls-for-better-custodial-solutions-to-enhance-bitcoins-institutional-adoption","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2024\/09\/23\/kpmg-calls-for-better-custodial-solutions-to-enhance-bitcoins-institutional-adoption\/","title":{"rendered":"KPMG Calls for Better Custodial Solutions to Enhance Bitcoin\u2019s Institutional Adoption"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2024\/08\/DALL\u00b7E-2024-08-16-14.17.29-A-dynamic-and-vibrant-illustration-showing-the-words-Crypto-and-Bitcoin-as-the-most-prominent-and-talked-about-in-Reddit-investment-threads.-The-b.webp\" class=\"ff-og-image-inserted\"><\/div>\n<ul>\n<li><strong>KPMG\u2019s recent report emphasizes the critical role of crypto custodians in safeguarding Bitcoin holdings, highlighting the need for strong security frameworks.<\/strong><\/li>\n<li><strong>As institutional adoption of Bitcoin increases, KPMG stressed that custodians should adopt proof-of-reserve practices and address key security challenges.<\/strong><\/li>\n<\/ul>\n<hr>\n<p>KPMG, the global consulting giant, has recently stated that the crypto industry needs strong custodial practices in place to boost the institutional adoption of Bitcoin. In its recent report, \u201cThe Importance of Custodians in Bitcoin Adoption and Ownership,\u201d KPMG mentions the importance of custodians in safeguarding investors\u2019 Bitcoin holdings.<\/p>\n<p>Thus, it also said that crypto custodians should ensure that they have a solid framework in place to deal with the emerging threat as security plays a crucial role in driving adoption. The statement emphasized the need for custodians to establish robust frameworks to address emerging threats, highlighting that security is crucial for driving adoption.<\/p>\n<p>Moreover, the report from KPMG outlines that Bitcoin\u2019s decentralized nature allows users to control their assets. However, it adds that managing the cryptographic keys has been a challenge for many in recent times. The global consulting giant noted that \u201cCustodians reduced the complexity and risk of managing bitcoin holdings, making it easier for new investors.\u201d<\/p>\n<p>It also highlighted the need for crypto custodians to improve security frameworks as well as regulatory compliance while protecting against internal and external threats. KPMG stated that custodians need to address six critical attack vectors, including threats from internal fraud, hackers, and other operational failures. Besides, it also stressed that some of the biggest crypto failures, like Mt. Gox and FTX, were due to the weakness in custodial oversight, leading to billions of dollars in investors\u2019 losses.<\/p>\n<h3>KPMG \u2013 Crypto Custodians Need to Have Better Transparency<\/h3>\n<p>Amid the institutional adoption of spot Bitcoin exchange-traded funds (ETFs), crypto custodians play a crucial role. With more than $59 billion in assets under management, crypto custodians play a crucial role in holding the underlying asset securely. Seeing this opportunity, banking giants like Standard Chartered are also opting for crypto custodial solutions, <a href=\"https:\/\/www.crypto-news-flash.com\/standard-chartered-launches-uae-crypto-custody-services-for-bitcoin-btc-and-ethereum-eth\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> CNF.<\/p>\n<p>KPMG urged custodians to adopt transparent practices, such as proof-of-reserves reports and enhanced operational reliability, to foster trust within the system. The firm emphasized the importance of regulatory compliance, particularly in adhering to anti-money laundering laws and oversight from bodies like the SEC and FinCEN. The crypto custody industry\u2019s movement has been characterized by a growing fear of a single point of failure, <a href=\"https:\/\/www.crypto-news-flash.com\/coinbase-custody-raises-red-flags-crypto-industry-fears-single-point-of-failure-for-btc-and-eth-etfs\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> CNF.<\/p>\n<p>The report also cautioned custodians to stay ahead of emerging threats, including those posed by artificial intelligence, and to adapt to new challenges in the evolving Bitcoin landscape, such as Layer-2 solutions and collaborative custody models.<\/p>\n<p>KPMG\u2019s recommendations stressed that prioritizing security, compliance, and transparency is essential for building investor confidence and safeguarding the integrity of the growing digital asset market.<\/p>\n<p>Despite the US SEC\u2019s controversial SAB 121 accounting rules, baking giant BNY Mellon secured the license to provide crypto custodial services in the US, <a href=\"https:\/\/www.crypto-news-flash.com\/breaking-billion-dollar-bank-bny-set-to-custody-bitcoin-btc-as-the-first-bank-in-u-s-history\/\" target=\"_blank\" rel=\"noopener\">reported<\/a> CNF.<\/p>\n<div class=\"tve-leads-shortcode tve-leads-triggered tve-tl-anim tl-anim-instant tve-leads-track-shortcode_228374\">\n<div class=\"tl-style\" id=\"tve_tcb2_set-001\" data-state=\"50\" data-form-state>\n<div class=\"tve-leads-conversion-object\" data-tl-type=\"shortcode_228374\">\n<div class=\"tve_flt\">\n<div id=\"tve_editor\" class=\"tve_shortcode_editor\">\n<div class=\"thrv-leads-form-box tve_no_drag tve_no_icons thrv_wrapper tve_editor_main_content thrv-leads-in-content tve_empty_dropzone\" data-css=\"tve-u-185a09262cb\">\n<div class=\"thrv_wrapper thrv_text_element\">\n<p data-css=\"tve-u-185a09262d4\"><span data-css=\"tve-u-185a09262d5\">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; No spam, no lies, only insights. You can unsubscribe at any time.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.crypto-news-flash.com\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KPMG\u2019s recent report emphasizes the critical role of crypto custodians in safeguarding Bitcoin holdings, highlighting the need for strong security frameworks. As institutional adoption of Bitcoin increases, KPMG stressed that custodians should adopt proof-of-reserve practices and address key security challenges. KPMG, the global consulting giant, has recently stated that the crypto industry needs strong custodial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":462097,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[5166,71,2606,25],"class_list":{"0":"post-462096","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other","8":"tag-bitcoin-etfs","9":"tag-crypto-custody","10":"tag-kpmg","11":"tag-news"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/462096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=462096"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/462096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/462097"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=462096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=462096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=462096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}