Core Insights - Traditional banks are facing significant operational and regulatory challenges as they begin to offer digital asset custody services, according to industry expert Joey Garcia [1][6] - The gap between traditional banking standards and the technical and regulatory frameworks of the crypto sector remains substantial, indicating that convergence is still a long way off [2][3] - The absence of a spot exchange-traded fund (ETF) has resulted in approximately $120 billion in digital assets being excluded from conventional custody systems, forcing firms to rely on intermediaries for security [4] Group 1: Challenges in Digital Asset Custody - As banks transition to digital asset custody, they will encounter major operational hurdles that could complicate their integration of these services [6] - The complexities and difficulties within custody and service will become apparent as banks begin to operate in this space [2] - Traditional banks layering digital services onto existing systems face deeper friction compared to firms like Xapo Bank, which evolved from a Bitcoin custodian to a fully licensed bank [4][6] Group 2: Industry Evolution and Partnerships - Xapo Bank's transition from a Bitcoin custodian to a banking institution provides it with a competitive advantage over traditional banks [6] - Garcia anticipates that banks will increasingly rely on third-party providers and integrated service models to navigate the digital asset landscape [6] - Discussions are ongoing regarding the integration of stablecoin payment services into traditional banking infrastructure, highlighting potential partnerships for future growth [5]

🚨 NEW: Sony Bank’s subsidiary Connectia Trust has applied for a U.S. crypto banking charter to issue dollar-pegged stablecoins and offer digital asset custody services. https://t.co/IGSjyN1IeL ...

Regulatory Landscape - Connectia Trust, a Sony Bank subsidiary, has applied to the U.S OCC for a national crypto bank charter [1] - Sony joins firms like Stripe, Coinbase, Paxos, and Circle in seeking OCC approval for regulated crypto operations [1] Business Strategy - The firm plans to issue a USD-backed stablecoin [1] - The firm plans to hold corresponding reserves for the stablecoin [1] - The firm plans to offer digital asset custody and management services [1]

Digital Asset Custody & Tokenization - The industry is exploring strategies for digital asset custody in preparation for tokenization [1] - The industry is focusing on achieving strategic advantage in the digital asset space [1] - The industry is interested in managing Real World Assets (RWAs) [1] - The industry is aiming to build a robust technology stack for digital asset management [1] Event Information - An event on digital asset custody and tokenization is scheduled for July 10th at 10 AM ET [1]

Event Focus - Digital asset custody's future is the focus [1] - Tokenization, risk mitigation, and scaling digital value operations are key topics [1] Event Details - The event is scheduled for October 7, 2025, at 10:00 AM ET [1] - Registration is available via the provided link [1] Sponsorship - Ripple is sponsoring the event [@Ripple] [1]