What Is the Difference between a Prime Broker and a Regular Custodian Bank? ⎊ Path

What Is the Difference between a Prime Broker and a Regular Custodian Bank?

A custodian bank primarily focuses on safekeeping assets, settling trades, and collecting income for clients, offering a low-risk, passive service. A prime broker offers all those services but adds significant value through financing (leverage), sophisticated trade execution, and clearing services.

The prime broker is a more active, risk-taking partner, providing integrated trading and capital solutions to institutional clients.

Differentiate between a Traditional Prime Broker and a Digital Asset Prime Broker

How Does a CBDC Differ from Commercial Bank Money?

How Do Prime Brokerage Services Relate to Institutional Access to Crypto OTC Desks?

What Is the Role of a Prime Broker in Institutional Derivatives Trading?

What Are the Key Differences between a Custodian and a Prime Broker in the Crypto Space?

What Is the Role of a Prime Broker in Managing a Stablecoin’s Reserve Liquidity?

How Does the Process of ‘Rehypothecation’ Affect a Prime Broker’s Client Assets?

What Is the Role of a Prime Broker in Traditional Options Trading?

Glossar

Prime Broker

Facilitation ⎊ A prime broker, within cryptocurrency derivatives and options trading, functions as an intermediary providing services to hedge funds and other large institutional investors.