Explain the Difference between an Omnibus Account and a Segregated Account in the Context of Crypto Prime Brokerage.
A segregated account holds a single client's assets entirely separate from the prime broker's assets and other clients' assets, offering the highest level of protection in case of broker insolvency. An omnibus account pools the assets of multiple clients together, often under the broker's name, with internal records tracking individual ownership.
While an omnibus account is more operationally efficient, a segregated account offers superior protection against commingling risk.
