Definition ∞ Custody Chains refer to the sequential record of ownership and transfer of digital assets, often maintained on a blockchain or similar distributed ledger technology. This chain documents every transaction from the asset’s creation to its current holder, providing a verifiable history. It ensures transparency and immutability regarding asset provenance.
Context ∞ The integrity of Custody Chains is central to the trust and security of digital assets, especially in institutional settings where compliance and auditability are paramount. News concerning hacks or illicit transfers often focuses on tracing these chains to identify vulnerabilities or recover assets. Regulatory discussions frequently address standards for maintaining secure and verifiable custody records for digital asset service providers.
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