Standard custody and trust company, a digital asset custodian based in New York, has expanded its range of cryptocurrencies to include Solana (SOL). To give institutional investors the opportunity to stake out and guard the sixth largest cryptocurrency in the world.
Starting Wednesday, institutional investors will be able to interact directly with Solana’s fast-growing ecosystem through segregated and on-chaon accounts. an application layer solution provider for institutions. The company also plans to provide escrow services for the Solana program library tokens, which is a collection of on-chain programs.
Standard Custody is supporting Solana to meet the growing institutional demand for SOL, which has grown exponentially since the beginning of the year. Earlier this week, SOL briefly overtook Cardano (ADA) and Tether (USDT) and became the fourth largest cryptocurrency by market capitalization.
Standard Custody’s CEO Jack McDonald attributed Solana’s recent growth to non-fungible tokens and decentralized finance. two of the largest and most lucrative blockchain use cases. Solana’s presence in both sectors has increased dramatically over the past few months.
Institutional involvement in the cryptocurrency sector has increased significantly over the past year, marking a turning point in the way traditional investors view digital assets. Since the introduction of Bitcoin futures in December 2017, the cryptocurrency sector has provided trading platforms, secure custody solutions and new product offerings such as exchange-traded products, microfutures and, more recently, exchange-traded funds, institutional ramps.
Companies like Coinbase, Microstrategy, and Riot Blockchain also play an important role in luring institutional investors into the crypto space. As institutional capital flows into digital assets, publicly traded companies with direct exposure to the sector have emerged as viable gateways for traditional investors.