Clear DefinitionsInstitutional Custody
1 min read
Pronunciation
[in-sti-TOO-shuh-nl kuh-stoh-dee]
Analogy
Institutional custody is like corporate fiduciary services for large investment funds.
Definition
Custody services tailored for institutional clients, combining advanced security, compliance, and operational integrations for large‑scale digital asset holdings.
Key Points Intro
Institutional custody offers:
Key Points
Enterprise-grade security: MPC, HSM, multi-sig.
Regulated framework: SOC 2, PCI-DSS, GDPR compliance.
Custody APIs: Integration with trading, reporting, and accounting.
Insurance and audit: Coverage for theft and regular attestations.
Example
A hedge fund uses BitGo’s institutional custody with MPC wallets and insurance for its crypto portfolio.
Technical Deep Dive
Institutional custodians implement threshold cryptography, segregated cold/hot vaults, robust key ceremony. They provide REST/WebSocket APIs for transaction signing, account statements, and compliance monitoring.
Security Warning
Even institutional providers can suffer breaches; verify audit reports and insurance limits.
Caveat
High minimums and fees may limit access for smaller firms.
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