Qualified Custodian Mandate

Definition ∞ A qualified custodian mandate is a regulatory requirement stating that certain entities, typically investment advisors or funds, must hold client digital assets with a qualified custodian. A qualified custodian is a regulated financial institution meeting specific security and operational standards for asset safekeeping. This mandate aims to protect investor assets and reduce operational risks.
Context ∞ The qualified custodian mandate is a significant regulatory topic influencing institutional adoption of digital assets. Compliance with this requirement can be challenging due to the limited number of institutions offering such services for cryptocurrencies. The expansion of qualified custodial solutions is seen as a critical step for further integrating digital assets into traditional financial portfolios.