Self-Custody is Coming. How Will it Affect your Practice?

Let's Chat About the Custody Game Changer!

Bitcoin in 2008, and more cryptoassets and blockchain technology since then, have brought us back to the idea of self custody. Think of it as the modern-day version of holding your own stock certificates, but way cooler because it's all digital.

(Check out the video at the end of this newsletter for more explanation)

So, What's the Big Deal with Self-Custody?

1. Digital Wallets are the New Norm: Imagine a world where holding Bitcoin or Ethereum is as easy as having a super-secure app on your phone. That's what digital wallets are bringing to the table. As we see more tokenized assets like Real Estate, public funds, private funds, debt and credit instruments, we’ll see more investments that clients can hold in their own wallets. It's a game-changer from the old days of having stock certificates stashed in your drawer.

2. Clients Have Got the Power: This new trend means our clients can move their assets around with a tap on their screens. It's all about freedom and flexibility now, and we've got to be ready for that. It's a whole new ball game! While you won’t have the stickiness of having your clients’ assets in your custodian of choice, you will be more valuable to them. You’ll need to help with the multitude of investment choices they’ll have available.

3. Your New Superpower - Security Guru: With great power comes great responsibility, right? In this case, it means we need to up our game in guiding our clients on how to keep their assets safe and sound. Think of yourself as a digital security ninja!

4. A World of New Opportunities: Self-custody is opening doors left and right. Your clients can now explore options like getting loans against their digital assets - stuff that was hard to even imagine a few years back.

Why Should You Care?

This isn't just a trend that's here today, gone tomorrow. We're talking about a big shift in how we handle and think about assets. We’ve seen over and over, once people get a feel for more control over anything in their lives, it isn’t easy to move back to the old way.

We’ll see more Alternative Investments tokenized as well, so we’ll see trend on top of trend…which eventually just becomes the norm.

Let's Dive Into the World of Self-Custody Together!

In a nutshell, this whole move to self-custody is more than just a shift in asset types. It's about rethinking the whole approach to asset management. And the best part? We get to learn and grow together in this.

Remember, the heart of great financial advising remains the same - trust, sound advice, and being there for your clients. As with most technological changes, your role becomes even more valuable, provided you understand the new tech.

Looking forward to navigating these exciting times with you!

Feeling intrigued? Catch our full video below for a deeper dive!

Stay savvy,

Adam