Binance hack may be ‘temporary setback’ for crypto, Grayscale’s Pandl says
Zach Pandl highlighted institutional custody safeguards as crypto markets recovered some losses following the record $6.3 billion Binance hack.
Binance’s $6.3 billion hack could temporarily hurt confidence in crypto markets but would ultimately lead to stronger security practices across exchanges, according to Grayscale.
“It also underscores the importance of institutional custody, such as offered by US-based crypto [exchange-traded products],” said Grayscale’s head of research, Zach Pandl, in a Tuesday report.
“These vehicles hold their assets at state-chartered banks and qualified custodians, typically offering offline storage, multi-signature wallets, SOC attestations and insurance policies,” he added.