--> Crypto custody: same game, new roles - or a whole new world? - Davies

Crypto custody: same game, new roles – or a whole new world?

Pitfalls and priorities for braving the digital age.

The rapid rise of cryptocurrency and its volatile market behaviour has driven a surge in supporting infrastructure. As digital assets gain institutional acceptance and blockchain technology evolves, safeguarding these assets has become a top priority for financial institutions.

The paper explores the key areas firms must address to build a secure and scalable crypto custody framework. It highlights the importance of adapting existing risk and compliance models to meet the unique demands of digital assets. Traditional controls often fall short when applied to decentralised technologies, making it essential to rethink governance, operational resilience, and regulatory alignment.

Firms must assess their readiness across several dimensions. These include technology architecture, data integrity, access controls, and third-party risk. The document also stresses the need for robust incident response planning and continuous monitoring to detect and respond to threats in real time.

Operational models must evolve to support 24/7 trading environments and cross-border asset flows. This requires integrating custody solutions with broader financial crime controls, including anti-money laundering (AML), sanctions screening, and transaction monitoring. Firms should also consider how to manage private key security, wallet infrastructure, and asset recovery protocols.

Rather than waiting for regulatory clarity, firms should build flexible frameworks that can adapt to future rules and market developments. Collaboration across compliance, technology, and operations teams is essential to ensure a holistic and resilient custody strategy.

Crypto custody is no longer a niche concern, it’s a core part of digital finance. Firms that invest in secure, scalable solutions will be better positioned to protect assets, meet regulatory expectations, and build trust with clients.

Download the full white paper using the form below. To discuss how we can support your crypto custody strategy, contact us.

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