Digital asset management is essential for modern enterprises that work with cryptocurrencies. Companies dealing with digital assets require a secure and reliable management system, and non-custodial wallets offer the best option.
In this article, we explore the key benefits of using non-custodial wallets for enterprise digital asset management.
What is Enterprise Digital Asset Management?
Enterprise digital asset management (DAM) is the system by which companies store, organize, and distribute their digital assets or assets of their end users. It provides businesses with a secure tech solution to manage mass crypto transactions in a seamless way across multiple blockchains.
With the increasing importance of digital assets in the modern business landscape, it has become critical for enterprises to have a robust and effective DAM system they can trust. However, with more advanced third-party systems managing your assets, cybercrime has also evolved new ways of accessing these funds. In the end, who better to entrust with your finances than yourself?
Why Non-Custodial Wallets for Enterprise Digital Asset Management?
When it comes to managing digital assets for enterprises, custodial and non-custodial wallets are the available options.
Custodial wallets allow a third-party service provider to take custody of digital assets on behalf of an enterprise, thereby transferring control and management responsibilities to the third party. On the other hand, non-custodial wallets, like THRESH0LD, allow the enterprise complete control over its digital assets.
By combining multiparty computation (MPC), non-custodial wallets offer enterprises significant advantages, such as better security, flexible governance, and privacy but the integration and setup have a bit of a learning curve. Custodial wallets may offer convenience, but that is often accompanied by significant counterparty risks while also denying enterprises direct control over assets.
On the plus side, to eliminate the learning curve that is often associated with setting up a non-custodial enterprise wallet solution, THRESH0LD has optimised its onboarding process to include workshops and a dedicated support channel for each client. This has made integration fast and seamless.
Benefits of Non-Custodial Wallets for Enterprise Digital Asset Management
By allowing businesses to maintain complete control over their digital assets, non-custodial wallets offer benefits that custodial wallets cannot match.
- Improved Security: Non-custodial wallets provide enhanced security, reducing the risk of hacking and security breaches that can occur with third-party custodians. This is particularly important for businesses dealing with significant digital assets or operating in a highly regulated jurisdiction.
- Increased Control: With non-custodial wallets, businesses have complete control over their digital assets, allowing them to manage their assets without being subject to third-party custodian regulations.
- Cost Savings: Non-custodial wallets are generally cheaper than custodial wallets, eliminating the need for businesses to pay third-party custodians’ fees for storing their digital assets.
- Ease of Use: With custodial wallets, businesses have to go through a third party to manage their digital assets, which can be time-consuming and complicated. With non-custodial wallets, businesses can manage their digital assets directly, which makes it easier to move, send, and receive digital assets.
- Improved Transparency: Non-custodial wallets provide greater transparency, allowing businesses to have complete visibility over their digital assets as they are maintained onchain and can be verified in real-time with onchain analysis tools.
- Flexibility: Non-custodial wallets offer a high degree of flexibility, allowing businesses to customise their wallet policies to meet their specific needs while granting operational oversight to C-Suites. This makes it easier for businesses to adapt to changing market conditions or regulations.
- Greater Privacy: Non-custodial wallets provide greater privacy, allowing businesses to maintain their privacy and keep their personal information secure.
Non-custodial wallets are an excellent option for businesses that want to take control of their digital assets. They are a secure and reliable way for enterprises to manage their digital assets and provide a range of benefits such as improved security, increased control, cost savings, improved transparency, ease of use, flexibility, and greater privacy.
THRESH0LD offers a single, simple-to-integrate API that helps digital asset businesses such as crypto exchanges, payment processors, hedge funds and OTC solutions cut transaction fees, save time and enhance security. THRESH0LD MPC supports 44 blockchain protocols and a DeFiBridge that enables swaps across thousands of assets.
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