Institutional Custody Frameworks
Institutional custody frameworks provide the secure, regulated storage solutions required by large investors to hold digital assets. Unlike individual self-custody, these frameworks involve professional-grade security, including cold storage, multi-party computation (MPC), and insurance coverage.
They must also comply with stringent regulatory standards regarding the separation of assets and auditability. These solutions mitigate the risk of theft, loss, or mismanagement, which are significant barriers to entry for institutions.
As the market matures, the integration of these frameworks with traditional banking and brokerage systems is becoming standard. They are essential for bridging the gap between the decentralized nature of crypto and the fiduciary duties of institutional investors.