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Institutional Safeguards

Definition

Institutional safeguards are protective measures and controls implemented to ensure the security, integrity, and regulatory compliance of digital asset operations for large financial entities. These safeguards include robust custody solutions, comprehensive risk management frameworks, stringent anti-money laundering (AML) and know-your-customer (KYC) procedures, and adherence to specific operational standards. Their purpose is to mitigate financial, operational, and reputational risks associated with digital asset engagement. Such provisions are essential for attracting and retaining participation from regulated financial institutions.