Securing Your AZERO: Exploring Custody Solutions for Individuals and Enterprises

Let’s go back to the basics and dive into the benefits of self custody–while also exploring what 3rd party custodians–such as one incoming–have to offer to enterprises!

The AZERO token is central to the Aleph Zero ecosystem. Whether you’re an individual or enterprise user, storing AZERO securely is probably at the top of your priority list when interacting with the network. 

Since self custody is one of the key benefits of crypto, most users in Web3 would generally prefer to hold their own assets—and they should. For some users, however, this is a burden they would prefer not to carry. They might need alternative ways of holding assets like AZERO for diverse reasons, ranging from convenience to compliance and organizational security.

To meet diverse needs for storing AZERO and unlock new opportunities for ecosystem growth, we’re actively collaborating with a leading custodian service provider. As this integration progresses, let’s explore the potential it offers.

What is Blockchain Custody?

First things first, let’s understand what custody means. Custody generally refers to the secure management and storage of assets. Essentially, it’s about ensuring that these assets are protected from theft, loss, or unauthorized access, while still being accessible to the rightful owner when needed.

In blockchain systems, funds, like AZERO, are under complete control by a specific account’s private key holder. Access to private keys means access to funds. Here, the role of a custodian is mainly to safeguard a particular user’s private keys. This leaves us with two basic options for custody in blockchain:

• Self-Custody: This is when the individual or entity holds their private keys and is solely responsible for the security and management of their assets. It’s the “do-it-yourself” approach.
• Third-Party Custody: Here, a trusted intermediary (like a specialized firm or platform) manages and secures the assets on behalf of the owner. For example, firms like Coinbase Custody, BitGo, Fireblocks, or Fidelity Digital Assets provide institutional custody services. These firms often offer added features like insurance, regulatory compliance, and high-grade security infrastructure.

Why Institutions Need Custody Solutions

Now that we understand that there are different types of custody for blockchain, it should come as no surprise that institutions, in particular, tend to favor—or, in most cases, need—third-party custody services. This has even been a barrier to adoption in the past.

Institutions require this kind of custody to ensure compliance with local regulations. Many jurisdictions require custodians to comply with local laws, ensuring that digital assets are stored and transferred in a manner that meets regulatory standards. For institutions, this is essential to avoid legal pitfalls.

What Custodian Integrations Have to Offer

This is why the upcoming custodian  integration with the Aleph Zero ecosystem is an important part of our journey. It will give Aleph Zero enterprise users and institutions peace of mind in terms of compliance while providing added services that guarantee that their assets are protected at the same level of security that they expect from traditional custodial services outside of blockchain. 

The integration will also enable institutions to securely hold AZERO and provide them the infrastructure to integrate with major platforms that rely on professional custody services. This is a necessary component in working with some exchanges and other large players of the industry–not only in crypto but also, for example, for FinTech companies that offer crypto-related services. 

Future integrations will also become much smoother. Many popular Web2 applications with crypto-specific features—or financial institutions offering crypto services—rely on custodians to enable functions like buying, holding, and selling assets. With AZERO available in such custody, those apps will have a much more straightforward path to using it.

Custodial integrations are a critical step toward opening opportunities for growth and broader adoption of any network. Once AZERO becomes available through third-party custody, it has the potential to significantly improve accessibility for participants within the ecosystem. 

Preparing for the Future: AZERO’s Institutional Growth

Part of Aleph Zero’s long-term vision for the blockchain space is to provide a comprehensive ecosystem of solutions that are scalable, private, easy to use, and are also as widely available as possible. We’ve made important strides recently in terms of making this a reality for individual users. The launch of Common and the EVM chain are an important part of that.

Ultimately, integrating with a major custody solution will be a leap forward in terms of the types of use cases that can be built on Aleph Zero but also where Aleph Zero can be featured and integrated. It will ensure that the ecosystem continues to be the place for regular users, as well as institutions and enterprises.
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