Custody Solution Standards

Custody Solution Standards refer to the industry-best practices for the secure storage and management of digital assets, particularly for institutional clients. This includes the use of multi-signature wallets, hardware security modules (HSMs), cold storage, and sophisticated multi-party computation (MPC) protocols.

Custody is a foundational element of the derivatives market, as the safety of the collateral deposited by users is paramount. High-standard custody solutions ensure that assets are protected from both external hacks and internal mismanagement.

As the industry matures, these standards are becoming more rigorous, often requiring third-party certification and insurance coverage. Platforms that adhere to these high-level custody standards are able to attract larger institutional clients who have strict mandates regarding the safety and management of their digital assets, thereby increasing the platform's liquidity and overall market impact.