Innovating Trust: Reimagining Digital Asset Custody for Customers | G+D and Money20/20 | FF Virtual Arena #325

Reimagining digital asset custody for financial institutions’ customers.

Secure custody could be the key to mainstream institutional adoption.

That’s the topic of our latest FF Virtual Arena. This time around, Money20/20 Head of Content for Europe and the author of ‘Why DeFi Matters’, Ian Horne speaks to Alex Gatiragas, Director of Solution Experience at Giesecke+Devrient (G+D) to find out how the big players can balance open minded innovation, with building trust around digital assets.

In this fascinating conversation, Horne asks what it will take to see mainstream adoption and Gatiragas provides an insight into the current landscape. G+D themselves are entering this sector with a new product – ConvegoⓇ TruSafe – specifically designed to “enable financial institutions to ensure retail investors navigate the digital asset landscape with confidence”. As for the future of this technology, we hear about the role digital wallets could play and some game changing use cases too.

Be sure to check out our previous Virtual Arena, titled ‘Digital Asset Use Cases Are Ready To Explode’, in which we interviewed Gatiragas along with Sabih Behzad from Deutsche Bank and Teana Baker-Taylor from Crypto UK to find out more about this topic. This episode is the perfect follow on to that and shows how G+D continue to innovate in this area.

Where is DeFi now?

The discussion opens with Horne introducing the topic of decentralized finance (DeFi), something he knows well through his own work on the topic. He points out its disruptive potential, highlighting how DeFi aims to facilitate peer-to-peer transactions without intermediaries. This has spurred the growth of the crypto asset market, posing both opportunities and regulatory challenges for traditional financial institutions.

Gatiragas goes on to explain G+D’s entry into the digital asset custody market, noting that although Global SecurityTech G+D is not traditionally associated with this space, it has substantial experience with blockchain and distributed ledger technologies, particularly in collaboration with central banks on central bank digital currencies (CBDCs). G+D’s move into digital asset custody is driven by increasing demand from customers and the necessity for traditional financial institutions to adapt to remain competitive, something they’re always keen to help with.

Digital Wallets could play a role in digital asset custody

The conversation explores the seamless integration of digital assets into everyday financial services, particularly through digital wallets. Digital wallets are becoming central to consumers’ lives, not only for payments but also for storing tickets, identity documents, and more. Gatiragas points out that integrating crypto capabilities into these wallets can make digital assets as accessible and usable as traditional financial instruments. This integration is key to mainstream adoption, allowing users to manage and trade digital assets within familiar environments.

He also emphasizes that the primary role G+D plays in this is in enhancing the security and trust in digital asset custody. They aim to offer a secure solution that combines the physical security of a card with digital wallet functionalities, allowing for the safe storage and management of digital assets. According to Gatiragas, the solution, ConvegoⓇ TruSafe, leverages G+D’s expertise in secure payment technologies to provide a user-friendly and secure way to manage digital assets. Tune in to the conversation to find out the very interesting way they ensure people’s crypto keys are kept safe.

Is mainstream adoption round the corner?

Addressing mainstream adoption, the discussion highlights that trust and security remain the main barriers. Incidents of hacks and scams in the crypto space have undermined confidence and so creating robust, user-friendly solutions is essential. Gatiragas also discusses the need for seamless user experiences akin to traditional financial transactions, where ease of use and security go hand in hand. This is an extension of G+D’s SecurityTech expertise.

The topic of regulation is another crucial point. Gatiragas acknowledges that regulatory clarity, such as the European MiCA regulation, is vital for fostering confidence and growth in the digital asset space. G+D closely follows regulatory developments to ensure their solutions fit with the evolving legal landscape.

Enjoy this must watch conversation to find out the latest developments in the space.