The digital asset custody landscape is consolidating around regulated financial institutions. Enhanced capital requirements and third-party auditing standards are redefining operational norms.
Institutional Inflows
Asset managers are steering capital toward custodians that provide segregated account structures and comprehensive bankruptcy protection. Unregulated trading venues are losing institutional market share rapidly.
Regulatory Compliance Costs
Maintaining compliance with new international financial surveillance frameworks has increased custodial overhead by 25%. Smaller custody providers are entering mergers to absorb these operational expenses.