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Institutional Custody Frameworks Reshape Digital Asset Liquidity

 ·  1 min read

The market structure for digital assets is undergoing a systemic transition toward traditional capital market standards. Regulatory pressure across North America and Europe has accelerated the separation of exchange operations from custody and clearing functions.

Risk Mitigation and Market Dynamics
Institutional traders increasingly demand third-party bankruptcy-remote custody arrangements before committing capital. This structural shift has reduced counterparty risk, though it has temporarily fragmented order book liquidity across trading venues.