Custodial Services Framework

Definition ∞ A custodial services framework outlines the rules and structures for safeguarding digital assets on behalf of clients. This framework specifies the security protocols, operational procedures, and legal agreements governing the storage and management of cryptocurrencies by third-party custodians. It addresses issues such as private key management, cyber security measures, and client asset segregation. A robust framework is crucial for building trust and enabling institutional participation in the digital asset space.
Context ∞ The development of clear custodial services frameworks remains a priority for regulators and financial institutions seeking to enter the digital asset market responsibly. News often covers new regulatory guidance or industry best practices that enhance the security and integrity of holding digital assets for others, particularly for institutional clients.