Joey Garcia, Director of Xapo Bank, cautioned that traditional banks rushing to offer digital asset custody services will face major operational hurdles. He predicted banks will rely on third-party providers and integrated service models. Despite Citibank’s exploration of crypto custody, about $120 billion in digital assets remain outside conventional custody systems. Xapo Bank’s evolution into a fully licensed bank from a Bitcoin custodian gives it an edge over traditional institutions. Garcia highlighted the wide gap between traditional finance and crypto-native models, emphasizing the need for partnerships for progress in the sector.

Read more at Yahoo Finance: Banks Will Face Headaches as They Move Into Digital Custody, Warns Xapo Bank Director Joey Garcia