How Does a Custodian’s Segregation of Client Assets Work in the Digital Asset Space?
Segregation means the custodian keeps client assets legally and technologically separate from the custodian's own assets and from other clients' assets. This is achieved by assigning each client a unique, dedicated wallet address or a dedicated sub-account within a multi-party computation scheme.
This ensures that in the event of custodian insolvency, client assets are protected.
