Overview
Institutional custody is regulated custody services for institutions holding large amounts of crypto. It provides secure storage and compliance. Custodians are essential for institutional participation.
How It Works
Custodians store keys in hardened environments, offer insurance, and provide reporting and compliance. They segregate client assets and meet regulatory standards. Institutions rely on their security.
Why It Matters
Institutional custody unlocks professional capital for crypto, bringing scale and legitimacy. It carries concentration and operational risk. It is a foundation of the institutional market.
Related Concepts
Institutional Custody relates to Custodial Wallets, Regulation, and Prime Brokerage. It serves Institutions.