Crypto Custody Is Booming
- Many large financial institutions are entering the crypto custody space as Fidelity rolled out its Fidelity Digital Asset Services this Q1. In addition, IBM announced that its cloud platform will be used to develop a crypto custody solution using a hardware security module (HSM). Ledger, a popular hardware wallet manufacturer, also shared on March 28 that it will offer crypto custody services for institutional investors.
- Financial services related to the custody market are also proliferating. Coinbase Custody announced that it will offer staking services for institutional investors, and Gemini launched two high-interest Bitcoin bank accounts. To learn more about cryptocurrency custody services in general, read this guide.
Shifts in Crypto Market Share
- Bitcoin price has been steadily climbing, breaking $4,000 for the first time in months while unspent transaction outputs were higher than even in early 2018. Despite these positive signs for BTC, altcoins have also been resurgent in gaining crypto market share. EOS and Ripple in particular have recently been rated by Weiss as being on par with Bitcoin.
- Ethereum is facing stiff competition from rival altcoins. Cardano (ADA), touted as an improved version of ETH, is up 50% this year and became a top 10 coin by market share. Stellar Lumens price had also surged after new offerings based on its blockchain were announced and Coinbase added XLM to its platform.
Big Players Pushing Crypto into the Mainstream
- JP Morgan and Facebook are working on their own cryptocurrencies, each company announced in March. IBM, facilitating adoption of blockchain tech, created a security testing tool for enterprise blockchain solutions. Apple also announced their upcoming credit card, Apple Card, which some crypto analysts believe may help pave the way for digital currency to go mainstream.
The tax deadline for the 2018 tax year is approaching! Learn the best practices for paying taxes on your crypto investments by reading our cryptocurrency taxes Q&A.