Regulatory authorities in major financial jurisdictions have introduced standardized asset segregation requirements for digital asset custodians. The mandates aim to mitigate counterparty risk and ensure bankruptcy remoteness for institutional investors holding digital assets.
Operational Compliance Costs
Tier-one digital asset venues face increased operational overhead to maintain segregated, real-time audited cold storage infrastructure. Compliance costs are expected to rise by 22% industry-wide, consolidating market share among legacy banking incumbents entering the space.