Crypto Long & Short: Redefining the Custody Standard for Banking

This week’s Crypto Long & Short newsletter features insights on the evolving custody standards in banking and the current state of the crypto market. Pascal Eberle of Sygnum Bank argues that custody is shifting from simply holding assets to proving correct asset holding, advocating for multi-signature technology (multisig) as a cryptographic solution offering increased accountability and security. Traditional custody relies on trust in centralized institutions, while multisig distributes control, allowing clients to hold their own keys and verify transactions on-chain. Andy Baehr of CoinDesk Indices notes the crypto market is awaiting a new catalyst for a rally, similar to the post-election boost in 2024, and highlights the divergence between ETH price and DeFi pool yields, suggesting the current rally is driven by institutional flows rather than core utility.

(Source：CoinDesk)