Blockchain Guardians: Marathon Digital VP and other industry leaders push for custody transparency

As digital assets continue to reshape financial systems, custody solutions are emerging as a central concern for retail and institutional investors.

During a panel at the recent Benzinga, the future of digital assets conference, industry leaders explored the evolving role of custody in protecting digital assets, balancing security and accessibility, and building trust through transparency.

Kevin MaloneyCEO of iTrustCapitalexplained how its platform accommodates over 55,000 users by collaborating with custodians such as Fire Blocks And Coinbase Prime. Our customers want security and peace of mind without the technical burden of managing their keys,” explained Maloney. The company uses a combination of offline cold storage and controlled online pickup access, providing security and functionality.

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The ability to meet user demands while maintaining robust safeguards has become a critical goal for custodial providers. As Maloney described it, this approach ensures asset security while meeting the needs of users who regularly move funds.

Building trust through transparency

Paul Giordanovice president of digital asset management at Marathon Digital Fundshighlighted the extent to which public companies rely on audited, federally chartered banks to store their digital assets. “Transparency and accountability are non-negotiable. It is the foundation of our strategy,” Giordano said.

Maloney proposed adopting regular spot checks for depositories to build trust. “Annual audits don’t go far enough. Investors need to see evidence of reserves more frequently to have real confidence,” he said.

The panel also discussed past industry failures and their lessons. Giordano highlighted remortgaging, where assets are pledged repeatedly, as a critical risk. “This practice creates instability and can lead to systemic failures in the event of a market slowdown,” he warned.

Responsibility as a way forward

Although custody technology has become more reliable, panelists agreed that human errors and unethical practices often create the greatest risks. Ben Spiegelmanvice president of Inventionemphasized this point: “The real problems were bad actors misusing assets rather than technical vulnerabilities. »

Looking to the future, panelists expressed optimism about greater collaboration between traditional financial institutions and digital asset providers. Giordano pointed to the involvement of established players like State Street, who he said could help bring more clarity and order to the industry.

Maloney also highlighted education as an essential part of adoption. “The more transparent and clear we are, the easier it will be for new participants to feel confident in this space,” he said.

By correcting past missteps and prioritizing transparency, custodial providers are laying the foundation for a safer and more trusted digital asset ecosystem. As Spiegelman summed it up well: “Building trust is essential to encourage adoption and deliver meaningful value to users. »

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