Digital Asset Custodian

Understanding Asset Custodians for Digital Assets

An asset custodian is an individual or entity entrusted with the responsibility of safeguarding valuable assets on behalf of an investor or client.

In the case of digital assets like BTC and ETH, the custodian takes on the role of protecting and managing these assets.

Digital Asset Custody

Unlike traditional assets, the custody of digital assets requires sophisticated security measures and internal controls to ensure the safe storage of clients’ assets.

Digital assets come with unique risks. For instance, if a person loses their private key, they will lose access to their assets, presenting a significant long-term risk.

Regulated Safety Measures and Compliance

Due to these challenges, institutions often rely on third-party custodians to manage and store their digital assets.

Digital asset custodians typically need to obtain a license from regulators in their jurisdiction to demonstrate compliance with safety and security standards.