At the Blockchain Life event in Dubai, Ledger CEO Pascal Gauthier reiterated his stance on the vital role of self-custody in the cryptocurrency ecosystem. While recent innovations like spot Bitcoin exchange-traded funds (ETFs) and centralized exchanges are making headlines, Gauthier argues that these developments should not overshadow the core principle of crypto: user-controlled assets.
Why Self-Custody is the Core of Cryptocurrency
In an interview with Cointelegraph, Gauthier made it clear that the entire premise of cryptocurrency is undermined if users relinquish control of their assets to third-party custodians. He referenced Bitcoin’s whitepaper, which describes the digital asset as a peer-to-peer payment system. According to him, Bitcoin—and by extension, other cryptocurrencies—was designed to eliminate middlemen like banks. Centralized entities like ETFs and exchanges may simplify access, but they deviate from the original decentralized vision.
Gauthier pointedly asked:
If not self-custody, then why crypto? There is no crypto without self-custody.
He believes that self-custody ensures that users maintain sovereignty over their assets, which is the true spirit of the crypto revolution. The rise of ETFs and other centralized services could reduce crypto to something it was never intended to be—a system that mirrors traditional banking.
Hardware Wallets Must Evolve Alongside the Crypto Ecosystem
Gauthier also stressed the need for hardware wallets to evolve to keep pace with the rapidly changing crypto landscape. Just as mobile phones have become more advanced, hardware wallets must similarly adapt to the growing complexity of digital assets, layer-2 solutions, and decentralized applications (dApps). According to Gauthier, future wallets will not only protect crypto secrets but also secure broader aspects of digital life.
He explained:
Your ledger will be your security device to protect your secrets, whether they are cryptocurrency secrets or online internet secrets.
This indicates Ledger’s expanding vision to safeguard not only cryptocurrencies but all kinds of sensitive online data, offering a comprehensive security solution.
Also read: Indicted NYC Mayor Eric Adams’ Crypto Promises Under Scrutiny Amid Legal Troubles
Moving Away from Blind Signing: A Critical Shift for User Safety
The CEO also emphasized the dangers of blind signing, a risky practice where users approve transactions without fully understanding the implications. A notable incident occurred in August 2024, when a crypto whale lost $55 million in stablecoins due to a malicious transaction at a DeFi protocol. Incidents like these underscore the need for better security and transparency in the crypto space.
Ledger has been advocating for clear signing, a system where users can view detailed transaction information on a secure device before approving it. This is why Ledger’s latest products, Ledger Stax and Ledger Flex, feature larger screens to help users better understand what they are signing.
Gauthier likened blind signing to signing blank checks online, stating:
Blind signing is something everybody does in the industry, but it’s crazy.
To address this, Ledger is actively partnering with various entities to promote education around clear signing and help the industry move away from dangerous practices that expose users to risks.
Ledger’s Push for a Secure, Self-Custodial Future
The underlying theme of Gauthier’s statements is clear: the future of crypto must be rooted in self-custody and user-controlled security. Ledger aims to lead this charge, not only by enhancing hardware wallet technology but also by promoting safer practices within the crypto ecosystem. With the introduction of innovations like Ledger Flex, the company continues to evolve its products to meet the growing needs of digital asset users while adhering to the founding principles of cryptocurrency.
In a time when convenience is driving more users to centralized platforms, Ledger’s focus on empowering users through self-custody remains more relevant than eve
