Address Structure for Custodianship Services

Charles has talked about having different address types for exchanges vs. individual accounts. Does anyone know what the plan is for custodianship services such as BAKKT? What happens with voting/staking if coins are held by a trusted-third party in this fashion? Are they treated the same as an exchange or is there a way to build out some type of proxy key solution that can be used for staking/voting but not for spending?

As the regulatory requirement landscape on this is not clear, I’m betting that they will be treated as an exchange and thus not capable of benefiting from staking, at least for now anyway.

Hmm, I would be surprised if stake held with custodians is unable to participate in the network.

As far as the process is concerned from regulatory perspective it should not be very different compared to how Equity dividends are applied in such portfolios. All public funds require that their assets be maintained with approved custodians. The custodian does maintain distinct accounts for respective clients.

In case of ADA, they should be able to maintain separate wallets on behalf of each client and also be able to delegate staking rights to some pool - again on behalf of the client.

It is possible that these custodians will host dedicated stake pools with favorable terms to attract institutional and corporate clients.

Yes, because the money is not theirs!

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