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How Do Institutional Custodians Manage the Risk of Holding Large Amounts of Crypto?

Institutional custodians employ multi-layered security protocols, including air-gapped cold storage, multisignature (multisig) wallets, and rigorous internal controls. They often use geographically distributed vaults and comprehensive insurance policies to cover potential losses.

This professional approach is designed to meet the high security standards required by institutional clients.

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