Securities Custody

Definition ∞ Securities custody refers to the safekeeping and management of financial assets, such as stocks, bonds, or digital securities, on behalf of clients. Custodians are responsible for protecting these assets from theft, loss, or unauthorized access, often providing services like trade settlement, record-keeping, and income collection. In the digital asset space, this involves securely holding private keys or tokenized securities, often through specialized digital asset custodians. This service is essential for institutional investors.
Context ∞ The demand for robust securities custody solutions for digital assets is a significant factor in attracting institutional investment into the crypto market. A key discussion involves the regulatory requirements for digital asset custodians and the technological innovations in secure storage, such as cold storage and multi-party computation. Critical future developments include the standardization of custody best practices and the integration of digital asset custody with traditional financial infrastructure.