Custody and Brokerage

Definition ∞ Custody and Brokerage refer to distinct but often co-offered services within the digital asset market. Custody involves the secure holding and management of digital assets on behalf of clients, typically by a third party. Brokerage, conversely, facilitates the buying and selling of digital assets, executing trades based on client instructions. Both services address different aspects of digital asset management.
Context ∞ The regulatory landscape for digital asset custody and brokerage is rapidly developing, particularly as institutional participation grows. Discussions center on defining clear operational standards, consumer protection measures, and licensing requirements for these service providers. Ensuring compliance and asset safety remains a key focus for industry participants and oversight bodies.