Summary
This article discusses how major financial institutions are becoming more interested in cryptocurrency, but the existing crypto infrastructure is not fully equipped to meet their standards. Issues include a lack of reliable staking providers and reliance on shared cloud infrastructure, which poses risks for large investors.
Key Facts
- Major financial firms like BlackRock and Morgan Stanley are increasing their involvement in cryptocurrencies.
- "Staking" is a process where crypto holders can earn interest by helping to secure digital currencies like Ethereum.
- Financial institutions find the current options for staking providers too limited and risky.
- The concentration of staking providers around a few major players creates potential risks.
- Many staking services operate on shared cloud platforms like Amazon Web Services, which can be a single point of failure.
- Institutions prefer diversified operations to minimize risk, a practice reinforced after the 2008 financial crisis.
- The crypto industry lacks the infrastructure depth and reliability that large financial institutions typically expect.
