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Institutional Custody Standards Tighten Under New Regulatory Frameworks

 ·  1 min read

Digital asset managers are restructuring institutional custody protocols in response to updated compliance directives from financial authorities across major jurisdictions.

Mitigating Counterparty Risk
The shift favors Multi-Party Computation (MPC) cold storage architectures over single-key wallet solutions. Prime brokers report that institutional clients now mandate real-time proof-of-reserve reporting and strict segregation of corporate and client balances.