Institutional Crypto Custody: A Guide to Roles and Control
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Institutional crypto custody is under renewed focus as market participants weigh how to pledge bank-held tokens as loan collateral without surrendering control. The key distinction lies in separating safekeeping, transaction signing permissions, and authority to sell collateral—three functions often bundled together by custodians. The guidance matters because institutions comparing custody services risk unknowingly granting lenders or custodians broader disposal rights than intended, exposing them to counterparty and operational risk. No specific protocols, chains, token prices, TVL, volumes, or funding figures were disclosed in the article. Watch for how custody providers structure segregated signing and collateral-liquidation permissions as institutional lending against stored tokens expands.
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