What Is the Definition of “Qualified Custodian” in the Context of Institutional Crypto Trading?

A qualified custodian is a regulated financial institution (like a bank or trust company) that is legally permitted to hold client assets, including cryptocurrencies, for institutional investors. They must meet stringent security, regulatory, and financial stability standards.

Their role is to provide secure, insured, and compliant custody services, which is a prerequisite for many institutional investors to participate in the crypto market.