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What Security Measures Do Qualified Custodians Employ for Institutional Digital Asset Holdings?

Qualified custodians employ multi-layered security measures, including air-gapped cold storage for the majority of assets to prevent online attacks. They utilize multi-signature schemes and hardware security modules (HSMs) for key management.

Furthermore, they implement strict internal controls, multi-person authorization for transactions, and comprehensive insurance policies to protect client funds against theft or loss.

What Is the Difference between ‘Hot’ and ‘Cold’ Storage for Crypto Custody?
What Is a Hardware Security Module (HSM) and Its Role in Cold Storage?
What Are the Trade-Offs between ‘Hot’ and ‘Cold’ Storage in an MPC System?
What Is a ‘Multi-Signature’ (Multi-Sig) Scheme and How Is It Used in Cold Storage?