Host Tom Shaughnessy talks to Ria Bhutoria, Director of Research at Fidelity Digital Assets. Ria discusses her recent article about Omnibus model, the importance of proof of solvency, technological developments in crypto and DeFi in financial institutions, and more.
- The omnibus account model has been important to large financial institutions as the cryptocurrency market has grown.
- Using omnibus accounts with digital assets means some value is stored online and some is stored offline.
- Large financial institutions are buying into digital assets and developing new technology for it slowly, but surely.
- “It’s easy to get lost in the day-to-day, and we’re so used to seeing constant news flow and announcements that it really takes taking a step back to realize how much progress we’ve actually made.” –Ria Bhutoria
- “There’s a lot of development going on, and a lot of it is just seemingly small improvements, but in aggregate I think it’s making the whole ecosystem more robust and stronger.” –Ria Bhutoria
- What is Ria’s background and how did she end up at Fidelity Digital Assets?
- The Omnibus model means that assets of multiple parties are combined and service providers establish segregation between clients in their books and records.
- Omnibus accounts came into existence after a paperwork backlog crisis in the 1960s and 1970s.
- The omnibus model helps improve liquidity for the account custodian.
- The ratio of what you have stored in cold offline storage vs hot online storage matters.
- Ria explains why ‘proof of solvency’ is important.
- Ria and Tom are excited by the increase in major financial institutions developing technology and increasing their understanding of digital assets to embrace cryptocurrency.
- There’s a lot of high-level development happening in the crypto tech space, but it takes a long time to implement changes the average user can see.
- Ria is most excited to see the kinds of services that institutions are going to offer to extend beyond what’s offered for traditional asset classes.
- There’s a range of experience and interest in DeFi, given that many people still don’t even understand Bitcoin.
- Fidelity has been doing research in digital assets by mining Bitcoin for years.
Support The Show
- “The Omnibus Model for Custody” by Ria Bhutoria: https://medium.com/@FidelityDigitalAssets/the-omnibus-model-for-custody-96b69710f92d
- Fidelity Digital Assets Website: https://www.fidelitydigitalassets.com/overview
- Ria Bhutoria Medium: https://medium.com/@riabhutoria
- Ria Bhutoria Twitter: https://twitter.com/riabhutoria
- Chain Reaction Twitter: https://twitter.com/chainpodcast
- Tom Shaughnessy Twitter: https://twitter.com/Shaughnessy119
Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC, XTZ, STX, SNX, RUNE, sUSD and HNT. Lets Talk Bitcoin is a distribution partner for the Chain Reaction Podcast, and our current show features paid sponsorships which may be featured at the start, middle and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product or service.
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