Coinjoker is the first cryptocurrency exchange solutions provider designed to provide the benefits of both centralized and decentralized in a compact hybrid solution.
Before getting into the topic of solving the crypto custody problems, we will discuss the custody of assets in exchanges.
What is Custody?
Custody in the terms of financial sector means that “It is the service provided by the company who safeguards the user funds and update the details of the balance to the users in the regular interval.
For example, in the cryptocurrency market, when A trades 10 bitcoins to B, A and B don’t meet and transact directly (B giving fiat currency to A). In this case, they both have a custodian(bitcoin trading site), which takes care of managing their accounts in fiat and crypto, and updates their respective balances with the new transaction.
Problems in cryptocurrency exchanges:
Fiat and Crypto custody:
All over the world, only some of the exchanges are accepting the fiat currency deposit and withdrawals and maintain them as a custody itself. This deposit and withdrawal are more or less contained slow by lengthy transaction time, fees and other factors. Meanwhile, this is good for small investors who are ready to invest. In the case of institutional investors, they are the biggest players in the market who are willing to invest a huge sum of money in crypto. Hence, they ensure that how their money is stored and safeguarded. But in the traditional finance sectors like stock, the deposits are withheld by the banks to ensure the safety of funds which is unavailable in crypto exchanges. Instead, the exchanges take control over the user funds in deposits and withdrawals.
How to solve the custody problems in crypto exchange platforms?
Innovation and ripping out the problems in the area of cryptocurrency market is the aim for most of the solutions providers.
1)As specified, some crypto exchanges are rolling out custody services to its users for a mutual involvement of institutional investors in the market. They offer this custodian management service either through internal development or by acquisition.
For example, BitGo’s recent acquisition of digital asset custodian Kingdom Trust, which holds more than $12 billion in assets. It would not be surprising to see crypto exchanges making similar purchases to boost their offer in future.
2)Another solution to the problem is decentralized exchanges. The main advantage of the platform is the user control their own funds irrespective of exchanges. In the recent days, there are a number of decentralized exchanges had been developed by our coinjoker which aims to solve the problems faced by institutional investors.
If you are a kind of businessmen who need assistance in the decentralized crypto-exchange development, connect with experts here
Turn Your Memes Into Money With Our Meme Coin Development
Transform memes into profits with cutting-edge Meme Coin Development services. Create a cryptocurren ...
Amplify Your Digital Assets With Our End-To-End Exchange Listing Services
A crypto exchange is a digital platform where individuals and traders can buy, sell, and exchange va ...
ICO Marketing Service - Boosting Your Token Sale Success
ICO Marketing Services refers to the specialized marketing strategies and techniques employed to pro ...
NFT Launchpad Development Services- To Raise Funds For NFT Projects
The emergence of NFT launchpad has provided new opportunities for artists, musicians, and producers ...
Slot Game Development - To Launch Online Casino Slot Machine Game
Slot Game Development is the process of creating online casino gaming platform like slot machine gam ...
AI & ML Development Services - Build Your Business With Our Innovative AI ML Technologies
Leverage our custom artificial intelligence and machine learning development solutions that are tail ...
Veve Clone Script - Launch Fandom NFT Marketplace App like Veve
Veve clone script is an app-based marketplace script that helps to build an NFT marketplace app for ...
Initial NFT Offering Platform Development Company - To Develop Your NFT Crowdfunding Platform
Coinjoker is a top-notch Initial NFT Offering (INO) Platform development company, that has been acti ...
Top 5 NFT Game Clone Scripts in 2023 - Start your NFT Gaming Platform Immediately
Businesses and startups have started to invest in developing NFT gaming platforms with NFT game clon ...
Soulbound Token Development Services - Create Web3 Powered SBTs
Soulbound Token Development is an innovation that safeguards the credentials stored in the soul. SBT ...