Institutional Custody Explained

One of the biggest barriers to digital asset adoption for individuals and institutions alike has been the complexity and risk of self-custody. Managing private keys is a technical burden that carries the risk of total loss if mistakes are made.

Institutional custody solves this problem by applying bank-grade security standards to digital asset storage.

What is Institutional Custody?

Institutional custody involves third-party regulated entities safeguarding assets on behalf of clients. These custodians are specialized trust companies or banks that operate under strict regulatory frameworks.

Key Security Features

1. Cold Storage

The vast majority of assets are held in “cold storage”—offline environments that are physically air-gapped from the internet. This eliminates the risk of online hacking attacks.

2. Multi-Signature Technology

Assets are protected by multi-signature (multisig) protocols, requiring multiple approvals from geographically distributed keys to authorize a transaction. No single person can move funds.

3. Segregation of Assets

Client assets are held in segregated accounts on the blockchain, distinct from the custodian’s or the platform’s own corporate funds. This ensures that client assets are not commingled and are protected in the event of insolvency.

Why It Matters for You

By using a platform built on institutional custody, you get the benefits of digital asset ownership—performance, portability, and diversification—without the terrifying risks of self-management. You own the asset; we handle the security.