Mapping out crypto custody solutions

Traditional financial institutions do a tremendous amount of business as "custodians," holding customers' assets to protect them against theft or lost. In the second quarter of 2018, four of the largest custody banks held a whopping $114 trillion worth of assets under custody and administration. Custodial solutions are important for financial markets: Instead of firms spending time and resources to manage assets, they pay someone to take on that role — leaving more time for firms to operate in their areas of expertise.

For investment advisors, custody is required by law. The Rules And Regulations, Investment Advisers Act Of 1940 requires that any registered investment advisor who has custody over clients assets must have those assets stored with qualified custodians.