What Is a ‘Qualified Custodian’ in the Context of Institutional Crypto Assets?

A qualified custodian is a regulated entity (like a bank or trust company) that is legally permitted to hold and safeguard client assets. For crypto, this means employing high-security, segregated storage methods.

Institutions often require their custodians to meet specific regulatory standards, such as those set by the SEC or local financial authorities, to ensure proper asset segregation and fiduciary duty.