Why The Onchain Custodian And BabelFinance Partnership Matters To You As An Institutional Player

Why The Onchain Custodian And BabelFinance Partnership Matters To You As An Institutional Player

The digital asset market has drastically evolved since the days of Bitcoin’s peer-to-peer methodology of value transfer to numerous blockchain applications and the creation of smart contracts.

However, one thing that you may struggle with as an institutional player is how to keep your assets secure from loss or theft.

With the evolvement of the digital asset market, the need for solutions targeted at securing them emerged. This is because most digital assets operate as cryptographic bearer instruments that possess keys that once stolen, make the asset unrecoverable and inaccessible to the rightful owner.

All this makes secure custodianship for your digital assets as an institution player of primary importance.

This is what initiated the partnership of Onchain Custodian with BabelFinance. The union will offer institutional players with secure storage and investment products.

Let's go further and see why this custody solution service partnership is crucial.  

The Onchain Custodian and BabelFinance Partnership Handles Unique Risks

It is vital to keep in mind that with digital assets like ether and bitcoin, clients can hold an unlimited amount, literally anywhere. These assets, unlike traditional assets, do not necessitate the need for conventional vaults and safes typically offered by banks.

While that is amazing and disruptive, it has created unique risks. For instance, due to Onchain Custodian (ONC) and BabelFinance partnership, customers of ONC have access to use BabelFinance's financial instruments in the token economy.

These innovative digital assets offered by BabelFinance require secure storage and Onchain Custodian offers quality custodian solutions to exchanges and institutions for assets that cannot be stored securely traditionally.

Digital Assets Possess Distinctive Features that Present Unconventional Challenges

There are so many aspects of digital asset custody, which sharply contrast the kind of security required for the safe storage of stocks and traditional assets.

These contrasting aspects pose unconventional challenges; the most prominent being how you can securely store the private keys of the digital assets stored.

Private keys are used in confirming that the owner of a digital asset is who they claim to be. Unlike passwords, you cannot reset private keys. So if these keys are stolen or lost, the digital asset disappears alongside it.

This is not the case if you use custodian services such as the ONC, as it offers BabelFinance customers and other clients or exchanges via the partnership, secure storage and accessibility to their digital assets.

With Onchain Custody, digital assets can be held on behalf of the owner or co-managed. The service also offers multi-Signature accounts and customizable user and approval roles.

These features are extremely beneficial to institutions and exchanges. For instance, in the event that passphrases or keys used to access the account are stolen or misplaced, ONC can verify your identity and make the recovery process an easy one.

They utilize vigorous security measures and innovative technological storage which handle the unconventional challenges of digital assets possess.

The Takeaway

The partnership between Onchain Custodian and BabelFinance is one every institutional player should take advantage of. From exchanges to asset managers, the unique risks of disruptive digital assets require the secure storage methods that Onchain Custodian offers.

So why the wait? Get secured!