A custody framework is a set of rules and systems for securely storing and managing digital assets. This framework outlines the technical, operational, and legal safeguards implemented by custodians to protect private keys and client assets from theft, loss, or unauthorized access. It addresses critical aspects such as cold storage solutions, multi-signature protocols, insurance coverage, and audit procedures. Robust custody frameworks are essential for institutional participation in the digital asset market.
Context
The discussion around custody frameworks currently centers on balancing security requirements with accessibility and regulatory demands, particularly for institutional investors. Future developments include advancements in multi-party computation (MPC) and hardware security modules (HSMs) to enhance asset protection.
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