What Is a “Qualified Custodian” in the US Regulatory Framework?

A Qualified Custodian is a financial institution, such as a bank, savings association, or certain registered broker-dealers, that meets specific regulatory standards for safeguarding client assets under the Investment Advisers Act of 1940. For crypto, the definition is still evolving, but it implies a high bar for security, segregation, and compliance, often requiring state or federal chartering.