BGDon 🇨🇦 🇺🇸 👨💻Good read. Current status and the challenges facing digital asset custodians - focuses on the UK but the principles apply everywhere. Challenges and risk span regulatory, contractual, cybersecurity, and operational domains! https://digitalbytes.substack.com/p/safeguarding-the-future-of-digital #crypto #digitalassets #custodyservices #digitalcustodians #cryptoregulation #cybersecurity
Safeguarding the future of digital assets: the challenges facing digital asset custodians
Written by Mark Turner and Rowan Milne. The digital asset custody sector is rapidly evolving, yet remains fragmented and largely unregulated in the UK, leaving investors exposed to risks. Unlike traditional finance, where custodians operate under clear legal frameworks, crypto custodians lack defined protections - often holding client assets in omnibus accounts that could be vulnerable in insolvency cases. As tokenisation expands across financial markets, the demand for secure and compliant digital custodians will grow, necessitating stronger security measures, operational resilience and global regulatory alignment to protect investors.