Critical Third Parties

Definition ∞ Critical third parties are external service providers whose operational failure or disruption could severely impact a financial institution’s ability to deliver essential services. These entities supply vital infrastructure, software, or processing capabilities that are integral to the institution’s operations. Examples include cloud computing providers, payment network operators, and specialized technology vendors. Their reliability is paramount for systemic stability.
Context ∞ News concerning critical third parties in the digital asset sector often highlights regulatory concerns regarding operational resilience and cybersecurity risks. Regulators increasingly scrutinize these providers to prevent single points of failure that could affect multiple crypto firms. Reports may detail new supervisory frameworks or incidents that underscore the dependence on these essential service suppliers.