Custody of digital assets: an inflection year in 2023?

Written by Kam Patel CEO of Custodiex

Definition of digital asset custody

According to the Alternative Investment Management Association (AIMA), the concept of digital asset custody revolves around the safekeeping of a private key. Its membership understands that as private keys are used to store, manage and transfer digital assets by the owner and help with the decryption of messages and authentication of transactions, they represent a single point of failure in the system.

The trilemma for financial institutions adopting custody of digital assets has always been security, speed and scalability. One of these always had to be sacrificed in traditional Custody-enablement solutions. The market for Custody solutions is being driven in response to regulatory and technological changes, market infrastructure developments and enhanced risk awareness. The market requires a world-class technology for storing digital assets and a custody solution that solves all three  issues of digital asset custody as the financial markets adopt bl…