What Is the Role of a Specialized Crypto Custodian in Managing Collateral Risk?
A specialized crypto custodian provides secure, institutional-grade storage for digital assets, mitigating the operational risk of hacks or loss associated with self-custody. They implement multi-signature wallets and cold storage.
They also provide services like proof-of-reserves and on-chain settlement, which are essential for the safe and verifiable use of crypto as collateral in derivatives trading.