Capital Allocators – Inside the Institutional Investment Industry Diogo Monica – Securing Crypto at Anchorage Digital (EP.259, Crypto for Institutions 2, EP.06)
Jun 30, 2022
Diogo Monica, Co-founder and President of Anchorage Digital, shares insights from his journey in digital asset custody and institutional crypto investing. He elaborates on the security innovations that led to the establishment of Anchorage, the importance of reliable custody practices, and their expansion into brokerage and lending. Diogo discusses the role of partnerships with Visa, insurance complexities in crypto, and exceptional hiring strategies for startups. He also dives into governance within Web3, emphasizing new tools for decentralized decision-making.
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The Lost Bitcoin Wallet
- Diogo Monica consulted for a fund that lost their Bitcoin wallet passphrase.
- They offered him 20% of the $1.5 million if he recovered it, highlighting the need for institutional custody solutions.
Sophistication vs. Simplicity
- Recovering the passphrase was surprisingly simple, revealing investors' lack of sophistication in private key management.
- Existing consumer devices and practices are insufficient for institutional investors.
Custody as a Foundation
- Unlike traditional finance, digital asset businesses like lending and trading require direct private key ownership.
- This necessitates a custody solution for secure asset settlement and control.
