Custody and Sub-Advisory

Definition ∞ Custody and sub-advisory refers to the specialized services provided by financial institutions for safeguarding assets and managing portions of an investment portfolio. Custody involves the secure storage of assets, preventing loss or unauthorized access. Sub-advisory entails delegating investment management responsibilities for specific asset segments to another expert firm. These services are fundamental to institutional participation in any asset class.
Context ∞ The digital asset space is witnessing significant growth in custody and sub-advisory services, catering to institutional demand for secure and regulated asset management. A key discussion point involves the evolving standards for digital asset security and the legal frameworks surrounding ownership. The expansion of these services is a critical factor for increasing institutional capital flow into digital assets.