A qualified custodian is a regulated entity authorized to securely hold and protect client assets. In the context of digital assets, this refers to a financial institution that meets specific regulatory standards for safeguarding cryptocurrencies on behalf of institutional clients or investment funds. These custodians offer robust security infrastructure, insurance, and compliance frameworks to mitigate risks such as theft, loss, or unauthorized access. Their services are essential for institutional participation in the digital asset market.
Context
News often discusses qualified custodians in relation to regulatory approvals for cryptocurrency investment products, such as spot Bitcoin ETFs, where secure asset holding is a prerequisite. The demand for qualified custodians has surged with increasing institutional interest, highlighting the need for regulated and secure infrastructure. Selecting a reputable qualified custodian is a critical due diligence step for any regulated entity dealing with digital assets.
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