MetaMask is one of the leading cryptocurrency wallets in the world. In a recent blog post by ConsenSys, the company that manages the MetraMask wallet, it was reported that MetaMask has partnered with three new cryptocurrency custodians: BitGo, Qredo and Cactus. This entry was posted on October 5, 2021 and we tell you about who the mentioned companies are, as well as why MetaMask decides to implement new services, in the following article.
Why is MetaMask partnering with cryptocurrency custodians?
The MetaMask portfolio, or rather one part of it, MetaMask Institutional, is constantly fighting for new institutional investors. It is precisely to attract such investors that the addition of support for services provided by BitGo, Qredo and Cactus is intended. This will allow companies and institutions that use the MetaMask wallet to access tokens from the DeFi, or decentralized finance, market, as well as other cryptocurrencies. MetaMask will also facilitate their subsequent storage. As ConsenSys mentions on its blog: ” Each of these strategic partnerships addresses different needs of organizations, from small crypto startups and DAOs to multi-billion dollar crypto funds “. These partnerships, therefore, are strategic because they are the ones that make it easier for institutions to access the DeFi space, which in this case – was not the easiest thing to do. After all, in order to serve institutional partners, MetaMask has to meet a number of security as well as compliance requirements.
Why DeFi sector?
The DeFi sector is becoming more and more popular, which probably explains why MetaMask is looking for the biggest profits there. But what exactly is DeFi? DeFi is the term used to describe blockchain-based, peer-to-peer financial services. DeFi therefore excludes the “third party” when conducting transactions between users, which is a bank or other financial institution. With DeFi, identical actions can be carried out as with a bank – so sending and receiving money, taking out loans or saving for the future. Users perform these actions through “dApps,” or decentralized applications.
For MetaMask, entering the DeFi space is a “milestone.” By partnering with BitGo, which only serves institutional customers, MetaMask is on track to expand its business even further. Its MetaMask Institutional product acts as an interface between the MetaMask wallet and decentralized applications from the DeFi space.