Custody Net Assets

Definition ∞ Custody net assets refer to the total value of digital assets that a custodian holds securely on behalf of its clients, minus any associated liabilities or fees. This metric provides an indication of the scale of assets managed by a custodial service provider. It is a critical figure for assessing the operational capacity and financial standing of digital asset custodians.
Context ∞ The reporting of custody net assets is a key factor in evaluating the trustworthiness and market position of institutional digital asset service providers. Increased scrutiny on asset segregation and proof of reserves has heightened the importance of transparent reporting in the news. Discussions often center on the security measures and insurance policies backing these substantial holdings.