Trust Compnay
Fiduciary entities that manage investment trusts holding cryptocurrencies for investors seeking regulated exposure without direct ownership.
What is Trust Company?
In the context of digital assets, a trust company, such as Grayscale, is a fiduciary entity that manages investment trusts holding digital assets like Bitcoin and Ethereum for investors seeking regulated exposure without direct ownership. Grayscale, founded in 2013, operates trusts like the Grayscale Bitcoin Trust (GBTC), which holds significant Bitcoin and other vehicles for assets like ETH and SOL.
These trusts provide wealth management and investment advisory services, enabling institutional and retail investors to access digital assets through public quotations or private placements, ensuring tax-efficient strategies and asset protection. Operating under U.S. regulatory frameworks, such trust companies facilitate secure, compliant investment in the digital asset market, often acting as a bridge between traditional finance and decentralized ecosystems.
Related Terms
BTC Risk (MSTR)
The annual probability that a liability's BTC Rating falls below 1x, estimated via Black-Scholes for asset drawdown.
Virtual AMM (vAMM)
A mechanism mimicking automated market makers for perpetual swaps without holding actual assets.
Funding Rate
A periodic fee exchanged between long and short traders to balance market positions.
Compound
A decentralized finance (DeFi) protocol that enables lending and borrowing of digital assets through algorithmically managed interest rate markets.
APR (Lending)
The annualized percentage rate of interest earned or paid in DeFi lending, excluding compounding.
Agentic Commerce
Commerce driven by autonomous agents using digital assets for transactions.