Institutional investment is pouring into the crypto world, particularly the nonfungible token (NFT) market. MetaMask Institutional announced another addition to its custodial services offerings for institutional-level clients in response to the influx.
Although MetaMask is a non-custodial wallet for the average user, the wallet's institutional branch has adopted custodial partnerships in various countries around the world.
Tavia Wong, Cobo's director of marketing and business development, told Cointelegraph that custodianship not only provides asset protection, but it also serves an administrative purpose for institutions.
“Because of the high levels of users and different clearance levels, institutions require additional features to avoid internal failures and the consequences of negligence."
While wallets like MetaMask have been criticized for not being "user friendly," this addition to custodial offerings prioritizes usability for large investors.
Along with internal collaboration tools, the new integration allows institutional clients to designate roles for the company. According to Wong, this allows the administrator to set user limits on buying, trading, and selling.
“With multisig access, it ensures that no single entity will be able to control all assets, removing any single point of failure."
Nonetheless, the debate over noncustodial and custodial wallets continues.
Noncustodial wallets are frequently looked to for greater security and financial autonomy, with many in the space touting the slogan "not your keys; not your coins."
However, as more non-technical users enter the space, custodial wallets frequently provide a more user-friendly environment. Some users even argue against the above-mentioned slogan in favor of greater accessibility for easy adoption:
Traditional financial giants such as Société Générale, one of Europe's largest investment banks, have recently launched crypto asset management services to provide their clients with an easy on-ramp.
Nasdaq also announced on September 20 that it will provide cryptocurrency custodial services.