Institutional Custody in Crypto
Source - Binance Research

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.


About Binance Research: Binance Research is the research arm of Binance, the world's leading cryptocurrency exchange. The team is committed to delivering objective, independent, and comprehensive analysis and aims to be the thought leader in the crypto space. Our analysts publish insightful thought pieces regularly on topics related but not limited to, the crypto ecosystem, blockchain technologies, and the latest market themes.

General Disclosure: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, cryptocurrencies or to adopt any investment strategy. The opinions expressed are as of the date shown above and are the opinions of the writer, they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies or any investment strategy nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.

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