Institutional participation in digital asset markets has triggered a parallel increase in compliance and custody expenditure. Regulatory frameworks now mandate clear segregation of client funds, pushing fund managers toward institutional-grade third-party custodians.
Custody Architecture and Capital Reserve Rules
Tier-one custodians are increasing multi-signature key architecture investments and proof-of-reserve auditing protocols. Compliance costs now account for up to 18% of operational budgets for crypto asset management firms.