Summary
This guide provides a comprehensive examination of digital asset custody, focusing on the importance of regulated custody for institutions. It outlines the various types of custody options, including regulated and unregulated custodians, detailing the implications of each choice. The document emphasizes the necessity of due diligence in key management practices to secure digital assets effectively. It explains the concept of qualified custody, which refers to custodians regulated in the United States, complying with rigorous standards to protect client funds. The guide also discusses wallet types, including hot and cold wallets, and highlights the significance of insurance and customizable security policies offered by custodians. An evaluation of custodians includes considerations for services they provide, such as trading and lending, access to liquidity, and compliance with regulatory requirements. The document serves as a primer for institutions navigating the complexities of digital asset custody, aiming to enhance understanding and security measures.
