In response to increasing concerns over centralized crypto storage and the recent failures of platforms like FTX, Qredo has launched an open-source, cost-effective solution designed to revolutionize the institutional self-custody wallet market. The New Qredo platform features advanced multi-party computation (MPC) key sharding technology, enhanced team permissions, and streamlined approval processes.
Centralized crypto storage has come under fire after a series of incidents involving the collapse of FTX and the bankruptcy of several platforms. These events have highlighted a growing demand for an alternative crypto custody solution that offers users full control over their digital assets while minimizing costs and external risks.
Qredo aims to fill the gap in the market by offering an institutional-grade crypto custody and wallet management solution that’s open to all users, not just those who can afford high service fees. This democratization of access levels the playing field for smaller players, challenging the traditional model employed by industry giants such as Copper and Fireblocks, who have traditionally controlled access to their products and charged hefty service fees.
Since its inception over four years ago, Qredo has built a strong client base, boasting over 85,000 users worldwide, with 350 of them being institutional and corporate customers. The company’s platform sees an average of over $4 billion of monthly asset movements in and out of wallets, with a spike to nearly $6 billion following the FTX collapse. Within the course of last year alone, the flight to self-custody accounted for just under $30 billion of crypto asset movements.
Despite its ambitious goals, the New Qredo may face skepticism from those who believe its open and cost-effective model could compromise security or lead to a saturation of the market. Additionally, Qredo will need to prove that its MPC key sharding technology can keep independent custody as secure as centralized storage options.
On the other hand, Qredo’s New Qredo platform has the potential to shift the balance of power in the institutional crypto custody space by offering an accessible and secure option for crypto custody at a fraction of the cost. This development could lead to a significant increase in self-custody adoption, ultimately giving users greater control over their digital assets – a core tenet of the decentralized ethos of cryptocurrencies.
In conclusion, the launch of New Qredo signals a potentially transformative trend in the institutional crypto custody market. By addressing the need for a cost-effective, open-source, and user-friendly solution, Qredo could successfully disrupt the status quo and shape the future of crypto storage for the better. However, the company will need to demonstrate the security and sustainability of its platform to win the trust of skeptics and secure its foothold in the competitive crypto custody space.
Source: Coindesk
