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Institutional Custody in Crypto

Binance Research (Mac Naggar)


  • Institutions are increasingly demanding exposure to the crypto asset class.

  • By employing security, operational, and legal best practices, institutional custodians provide the peace of mind many institutions require to make an initial leap into crypto.

  • There are three classifications of institutional custodians: custodians, custodial technology providers, and hybrid custodians.

  • Unlike exchanges, institutional custodians are, first and foremost, focused on optimizing for asset security and protection.

  • Institutional custodians are redefining what it means to be a crypto custodian by offering new, innovative custody solutions.

  • Furthermore, institutional custodian offerings are not limited to custody but also include trading, staking, insurance, audit, escrow, accounting, and research offerings.

  • Off-exchange settlement (“OES”) is a novel institutional custody offering that allows institutions to trade crypto assets at a convenience level similar to if their assets were on an exchange, without actually being on an exchange.

  • Institutional custodians are evolving to provide similar offerings as prime brokerages.

  • Crypto custody regulations are in their nascent stages but becoming clearer.

  • Traditional financial custodians are beginning to enter the crypto custody space to compete with crypto-native custodians.


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