Custody Network

Definition ∞ A custody network is an infrastructure designed for securely holding and managing digital assets for clients. This network typically involves a distributed system of secure storage solutions and operational protocols. Custody networks cater to institutional investors and large enterprises requiring robust security and compliance measures. They facilitate the safe handling of private keys and digital funds.
Context ∞ The development of reliable custody networks is crucial for institutional adoption of digital assets. Concerns about asset security and regulatory compliance drive the demand for sophisticated custody solutions. News reports frequently cover new partnerships between traditional financial institutions and crypto custody providers. The evolution of these networks directly impacts the growth and maturation of the digital asset market.