Custody Services

Definition ∞ Custody services refer to the secure safekeeping of digital assets by a specialized third party. These services are responsible for safeguarding private keys and ensuring the physical and digital security of held cryptocurrencies and tokens. Professional custodians offer institutional-grade security protocols, including cold storage solutions and robust operational procedures. This function is vital for entities that hold substantial digital asset portfolios and require assurance against theft or loss.
Context ∞ The prominence of custody services is amplified in discussions surrounding institutional adoption of digital assets and the establishment of regulated financial products like spot Bitcoin ETFs. News coverage often highlights partnerships between traditional financial institutions and crypto custodians, signaling growing confidence in the security and reliability of these specialized offerings. The regulatory landscape governing crypto custody remains a key point of discussion, with ongoing efforts to define clear standards for asset protection and operational integrity.

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→Cryptoasset Activities

→UK Regulatory Framework

→Prudential Backing

UK Treasury Publishes Draft Law Regulating Digital Asset Activities under FSMA

The Draft Order expands the regulatory perimeter, mandating full FCA authorization for trading platforms and classifying stablecoins as securities.

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→Network Fees

→Financial Technology

→Institutional Finance

US Regulators Permit Banks to Hold Native Tokens for DLT Operations

This regulatory clarity unlocks scalable institutional adoption by eliminating the critical operational friction of managing gas fees for on-chain treasury and settlement platforms.

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→Digital Asset Licensing

→Insolvency Protection

→Payment Instrument Institution

Swiss Council Proposes Two New Licensing Categories for Digital Asset Firms

New Swiss framework mandates dual licensing, requiring full asset backing and segregation for stablecoin and custody providers.

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→Custody Services

→FSMA Regime

→UK Legislation

UK Treasury Finalizes Draft Law Bringing Crypto Activities into FSMA Perimeter

The UK's legislative move mandates all crypto exchanges and custodians integrate into the FSMA framework, elevating operational resilience and consumer protection requirements.

→Financial Institution Risk

→GAAP Compliance

→Crypto Asset Liability

SEC Repeals SAB 121, Removing Major Digital Asset Custody Barrier

The SEC's repeal of SAB 121 removes a punitive accounting barrier, immediately de-risking digital asset custody for regulated financial institutions.

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→Compliance Standards

→Tokenisation

→Systemic Risk

FCA Tailors Crypto Regulation, Exempting Core Finance Conduct Principles

UK regulatory integration mandates a bespoke compliance architecture, requiring firms to prioritize operational resilience over legacy conduct standards.

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→Financial Services Regulation

→Dealer Requirements

→UK Jurisdiction

UK Government Publishes Legislation Bringing Crypto Exchanges into Financial Regulation

The UK's integration of crypto exchanges and dealers into the FSMA perimeter mandates a systemic overhaul of operational resilience and consumer protection frameworks.

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→Regulated Activities Order

→Financial Services Act

→UK Financial Regulation

UK Government Publishes Draft Law Regulating Crypto Exchanges, Staking, and Custody

The UK's formal extension of the FSMA perimeter to core crypto services mandates full FCA authorization, fundamentally restructuring market access and operational compliance.

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→CASP Licensing

→MiCA Implementation

→E-Money Tokens

EBA Confirms MiCA and PSD2 Dual Licensing for EU Stablecoin Services

The EBA's clarification mandates dual licensing for e-money token services, introducing significant operational friction and double capital requirements by March 2026.