Institutional participation in digital asset markets is shifting toward regulated bank-grade custody solutions as regulatory oversight matures globally.
Segregation of Assets
New enforcement guidelines require strict separation of client assets from exchange balance sheets. Institutional desks are deploying multi-party computation cold storage to mitigate counterparty risk.
Market Liquidity Impact
Clearer regulatory rules have encouraged off-exchange settlement networks, reducing liquidity fragmentation across major trading venues and lowering execution slippage for large orders.