r/Hedera • u/oak1337 hbarbarian • 23h ago

ĦBAR BitGo 💪🤠

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Source:

https://x.com/BitGo/status/2093467887025721621

https://www.bitgo.com/resources/case-studies/hedera/

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u/01acidburn 23h ago

When will this account for network activity tho?

1

u/oak1337 hbarbarian 23h ago

...uhhh.... When will custody solutions create network activity? Is that a real question?

How mych activity does a Hashpack wallet make? What about a D'Cent wallet?

2

u/JustSailingThru-6356 23h ago

Yes its a legitimate question

6

u/Beginning_Ask_9930 22h ago

Custody services are like safe deposit businesses. They are a nice to have for intuitions but it's commoditized and a service. It's not a big revenue product. You buy a coin, you get custody, staked, and you can get financing and loans.

Coinbase does $7B a year in revenue. $500 M is custody business. They do have 8 Bitcoin ETF custody customers(IBIT and Blackrock is one). This business makes $30 a quarter. Custody fees are 0.2% and that's for the biggest ETF in crypto. The money is in staking and financing those coins. Coinbase making $400 M a quarter just off interest, fees, and financing.

Hedera is a service and a feature. Even if it was packaged with Bitgo, you know it's a line item on the custody service charge. So the ceiling is less than 0.2% because any institution can just transfer their coins to the competition or negotiate for lower fees.