Definition ∞ Institutional Custody Services provide secure storage and management of digital assets for large financial entities, corporations, and high-net-worth individuals. These services typically involve robust security measures, regulatory compliance, and insurance provisions to protect significant holdings. Custodians handle private keys and cryptographic security, offering a trusted third-party solution for asset safekeeping. This provision allows institutions to participate in the digital asset market with reduced operational risk.
Context ∞ News frequently reports on the expansion and evolution of institutional custody services as more traditional financial players enter the cryptocurrency space. Discussions often center on regulatory clarity, security audits, and the integration of these services with existing financial infrastructure. The availability of reliable institutional custody is a critical factor influencing mainstream adoption and market liquidity for digital assets.