As Bitcoin (BTC) financial assets increased, CASA co-founder CSO Jameson Lopp assessed that focusing the amount of BTC on several custody service providers could pose systemic risks.
The race said:
“The “Bitcoin Corporate Treasury” story is footgun when it does not involve sovereignty through a self-custody story.
This is not the first time Lopp has raised custody concerns this week. He previously questioned whether a third party would act as a custodian in response to it. Bitcoin Bond Company’s Pierre Rochard announced on April 7th. The company We will invest up to $1 trillion in Bitcoin until 2046.
Rochard said there are already “many great institutional managers to work with.”
Structural vulnerability without simple fixes
Based on Bitcoin Treasuries data, public and private companies currently hold 1,019,136 BTC in the Ministry of Finance. This amount corresponds to 32.3% of 3,150,000 BTC controlled by large entities and 5.13% of the total 19,849,381 BTC in circulation.
The expansion of the role of custodians in managing institutional Bitcoin positions is similar to the patterns observed in traditional finance.
Institutions typically rely on licensed custodians to meet internal governance requirements and regulatory compliance.
Strategy Executive Secretary Michael Saylor highlighted this usage when he said there was a risk of Bitcoin’s government seizure. It’s lower when held with institutional custodians. Saylor said he would “comply with legal and tax obligations.”
Saylor’s company has over 528,000 BTC in the Ministry of Finance. It is divided among custodians Fidelity, Anchorage Digital, Coinbase Prime, and more.
In particular, these are the same services used by well-known entities that interact with Bitcoin, such as Coinbase and BlackRock, which rely on Coinbase. Recently added Anchorage.
This could streamline financial management, but it creates a single point of failure in a network built for decentralized controls such as Bitcoin.
However, solutions may not be as simple as self-reliance. Kaia Chairman Sangmin Seo Highlighted It says that while the lack of self-reliance poses risks, “incomplete sovereignty creates friction.”
He concluded:
“Infrastructure builders need to solve both. Or simply rebrand the older model.”
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(TagStoTRASSLATE) BITCOIN (T) BlackRock (T) Coinbase (T) Crypto (T) Features (T) Regulation (T) Technology
