Asset Custody

Overview

Context and purpose

The custodian may hold assets directly or coordinate technology and sub-custodians. Custody does not automatically establish the same legal rights in every jurisdiction or product. Contracts and account structures determine whether assets are segregated, held in trust, recorded in an omnibus wallet, or exposed to claims against the provider. Technical control and legal ownership must therefore be evaluated separately. A custody arrangement should define supported assets and networks, control responsibilities, transaction policy, incident handling, continuity, reconciliation, reporting, insurance, and exit procedures. Safe custody protects both the ability to prevent unauthorized movement and the ability to complete authorized movement when needed. Asset Custody works through controlled onboarding, asset receipt, internal attribution, storage-tier assignment, authorization, signing or provider instruction, monitoring, withdrawal, reconciliation, reporting, and return or migration. Asset Custody should be distinguished from investment ownership and from a software interface.

How it works

Asset custody is the arrangement for controlling, safeguarding and transferring digital assets, including legal responsibilities and cryptographic authority. Physical possession of a device and control of a signing key need not belong to the same party.

Practical checks and failure points

Evaluate key control, segregation, insolvency treatment, operational controls and audit evidence rather than marketing use of the word secure.

Related concepts

Custody Controls · Cold Custody