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Welcome to the institutional newsletter, Crypto Long & Short. This week:
Pascal Eberle of Sygnum Bank argues that the future of custody lies not merely in safekeeping assets, but in indisputably proving their secure and compliant management.
New York’s election buzz is fading, but the crypto market’s pulse is still racing. All eyes are peeled, searching for a charismatic leader, a digital messiah, to ignite the fuse for the next bull run. Andy Baehr at CoinDesk Indices delivers the vibe check: will a new champion emerge from the political ashes to lead crypto to glory?
-Alexandra Levis
Expert Insights
Redefining the Custody Standard for Banking
– By Pascal Eberle, chief of staff, Sygnum Bank
The financial world is undergoing a seismic shift. Forget slow evolution – the walls separating old-school finance and the crypto frontier are collapsing at warp speed. Once dismissed as fringe, blockchain tech is now being embraced by the very institutions that once scoffed. Prepare for a new era of custody, one forged in the fires of cryptographic accountability, where every transaction is transparent and trust is mathematically guaranteed.
Custody isn’t just about possessing assets; it’s about proving airtight ownership. Multi-signature technology (multisig) offers exactly that: unshakeable, cryptographic proof, ensuring constant validation of your holdings.
Where traditional custody falls short
Imagine handing over your prized possessions, not just to a trusted friend, but to a faceless institution. That’s legacy custody in a nutshell: you relinquish control, placing unwavering faith in systems shrouded in secrecy. Your assets become tethered to legal and regulatory landscapes, a complex web that introduces a chilling element – counterparty risk.
Think of it as navigating a maze where some corridors offer better protection than others. Swiss banks, for instance, boast robust safeguards, legally isolating client assets from bankruptcy and severely restricting collateral rehypothecation. Yet, even here, the foundation remains trust: trust in the bank, trust in the law, and trust in regulators to uphold their promises.
But let’s be honest: hope, trust, and belief are comforting sentiments, not impenetrable shields. They’re not security.
Imagine a vault where no single key unlocks the treasure. That’s the power of multi-signature technology, a revolution in custody. Forget the old model of centralized control; now, power is shared. Think checks and balances, but for your digital assets. Clients become active participants in their own security, wielding keys as part of the architecture. Every transaction demands a chorus of approvals, forging a new era of accountability. Forget trusting institutions; now, trust the unyielding logic of code. The blockchain becomes the ultimate enforcer, a regulator that never sleeps, powered by the might of, in Bitcoin’s case, the world’s most formidable computing network. “Code is law” isn’t just a slogan; it’s the bedrock of this new financial reality.
More than just tech, it’s a philosophical earthquake. Multi-sig vaults aren’t just about security; they scream, “Don’t trust, verify” the cypherpunk mantra etched in code. Imagine a transparent fortress for your assets, visible in real-time on the blockchain. No more black boxes or blind faith. You’re not just a customer; you’re a co-architect of your financial safety, taking control instead of handing it all over.
Before blockchain, shared custody was a pipe dream. Banks, trapped by outdated systems, couldn’t juggle distributed control with ironclad security and speed. Enter blockchain. Just as multi-factor authentication revolutionized application access, multi-signature wallets are poised to redefine asset security. Imagine a vault that unlocks only with multiple keys – that’s the power of multisig.
Cryptographic accountability changes everything
Henry Ford knew customers wouldn’t demand automobiles; they’d ask for faster horses. Today, most investors aren’t clamoring for multi-signature custody yet. But imagine this: complete on-chain visibility, ironclad security through distributed key management, and the power to actively protect your own assets. Once experienced, returning to traditional custody will feel like trading in a self-driving car for a horse-drawn carriage.
The banking world is about to be flipped on its head. Those still hiding behind outdated, opaque systems are signing their own death warrant. Remember when SWIFT revolutionized communication and clearinghouses streamlined settlements? Prepare for the next seismic shift: cryptographic accountability.
Multisig isn’t a perk; it’s the new bare minimum. Clients are waking up and demanding it because, frankly, it’s just plain better. Kiss goodbye to single points of failure and internal fraud. Say hello to real-time verification and putting clients firmly in the driver’s seat of their assets. Once they taste this level of crystal-clear transparency and rock-solid security, there’s no going back. The future belongs to those who embrace it. The rest? They’ll be relics of a bygone era.
Customers want visibility, control and accountability. Multisig custody delivers all three.
Expert Insights
Promises Made, Timing Hard
– By Andy Baehr, CFA, head of product and research, CoinDesk Indices
The clocks turned back, and not just on the East Coast. As dusk swallowed New York City at an ungodly 4:49 PM on Sunday, a similar darkness settled over the crypto markets. A new mayor stepped into City Hall amidst division, mirroring the fractured sentiment gripping the digital asset space. The endless summer of crypto optimism feels like a distant memory.
Government gridlock stalls legislative progress. The Fed offers no comforting signals. Where are the catalysts to reignite the spark? Hopeful narratives are spun, FUD is fiercely challenged, but the market remains burdened by price stagnation and the lingering pain of October’s crash. Meanwhile, Wall Street parties like it’s 2017, a stark contrast that only deepens the crypto winter’s chill.
Sober Uptober – CoinDesk 20 names fared poorly in a traditionally positive month
Rewind to the pre-election buzz of 2024. The CoinDesk 20 Index languished below 2,000. Bitcoin, a relative bargain in the high $60Ks, was a sleeping giant. Fast forward to November’s champagne supernova: the CD20 nearly doubled, ETH flirted with $4,000, and Bitcoin began its audacious ascent towards $100K.
The whispers of regulatory embrace turned into a roar. Yet, pinpointing the exact moment and the winning horse proved agonizing. Q1’s “Tariff Tantrum” shook even the staunchest believers. The subsequent rebound left most scrambling. Remember early Q2, when Ethereum was the awkward guest at the portfolio party? Then BAM! It ignited a market-wide rally, blasting everything to new heights.
Performance since Election Day 2024 – big numbers mask difficult timing
The post-election euphoria, once a booster shot for portfolios, fades fast. Soon, its fleeting gains will be swallowed by year-end returns, demanding a more sustainable strategy. Want proof? Consider performance since Inauguration Day. The field is lackluster, save for Ethereum’s explosive surge – a stark reminder that real alpha requires more than just hope.
Price action since Inauguration Day – only ETH has led the way higher among top names
The crypto arena yearns for a new champion to ignite the next market-wide surge. Bitcoin, the 2024 trailblazer, cemented its place in mainstream portfolios via ETFs and corporate treasury buy-ins. Ether seized the baton in 2025, riding the wave of stablecoin dominance and finally realizing the institutional promise of tokenization. XRP, defying regulatory headwinds, delivered stellar returns despite its story remaining curiously sidelined by major capital allocators. Solana, aggressively courting the spotlight with sponsorships and consumer-facing initiatives, hasn’t seen its price match its ambition. So, what narrative, which asset, will unleash the next explosive rally? The crypto world holds its breath, awaiting the spark.
Chart of the Week
ETH’s price is soaring, but is it built on shaky ground? Examining the divergence between its price and DeFi yields & funding rates reveals a potentially unsustainable rally. Since August 2025, while ETH has mooned, DeFi pool APYs (DeFillama) and ETH funding rates have steadily declined. This disconnect screams “Digital Asset Treasury” (DAT) hype, fueled by institutional flows, rather than genuine demand for ETH’s utility. The persistent low DeFi yield acts as a red flag, indicating weak underlying demand for ETH in its core DeFi applications. As institutional money inevitably slows, this weakness will likely become a major obstacle, challenging the DAT narrative and potentially leading to a correction.
Listen. Read. Watch. Engage.
- Read:Nasdaq CEO Adena Friedman outlines three ways blockchain can fix finance.Crypto Curious? Top 3 Insights for Advisors, Straight from a CoinDesk Expert.Tune into Asset TV as CoinDesk’s David LaValle unveils the essential crypto knowhow every financial advisor needs.
NYC’s Flatiron Plaza is about to get a dose of digital currency! On November 7th, Grayscale Investments is dropping into the heart of the city with a popup event showcasing the Grayscale CoinDesk Crypto 5 ETF (GDLC).
CoinDesk will be on location from 10:30 AM to 12 PM ET, adding their crypto expertise to the mix.
Looking for more? Receive the latest crypto news from coindesk.com and market updates from coindesk.com/indices.
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