Why Is Key Management a Greater Concern for Institutions than for Retail Traders?

Institutions manage vast amounts of capital, making them a much larger target for sophisticated attacks. They also have regulatory and fiduciary duties to protect client funds.

A failure in key management could lead to systemic losses and legal repercussions, whereas a retail trader's loss is typically limited to their personal funds. This necessitates multi-layered, highly secure, and auditable key management solutions like HSMs and multi-sig wallets.