What Are the Primary Risks Associated with Holding Large Amounts of Cryptocurrency for Physical Settlement?

The primary risks include security and operational risks. Security risks involve the potential for hacking, theft, or loss of private keys, especially when managing hot wallets for high-volume transactions.

Operational risks include network congestion leading to delayed or failed transfers, and the management of variable network transaction fees (gas fees). Furthermore, regulatory and custody risks, such as compliance with local laws and finding a secure, regulated custodian, add significant complexity and cost.