What Is the Role of a Custodian in the Tokenization of a Physical Asset?

The custodian's role is to securely hold and manage the underlying physical asset that the token represents. Since the token is a digital representation, the custodian ensures the physical asset exists, is insured, and is properly maintained.

They act as the trusted link between the digital token and the real-world asset. This is critical for investor confidence and the legal enforceability of the token's ownership rights.