Digital asset custody refers to the secure storage and management of cryptocurrencies and other digital assets. As the crypto market evolves, banks are increasingly taking on crucial custody roles.

The secure storage of digital assets faces several key risks:

Technical Risks:

• Cybersecurity threats and hacks
• System failures and technical glitches
• Vulnerabilities in storage infrastructure

Human Factors:

• Employee errors
• Social engineering attacks
• Internal fraud risks

Financial Risks:

• Institutional insolvency
• Fund misappropriation
• Market volatility exposure

Banks are uniquely positioned to provide digital asset custody services due to:

• Established security infrastructure
• Regulatory compliance expertise
• Institutional-grade risk management
• Existing customer trust relationships

The future of digital asset custody is evolving toward:

• Hybrid custody solutions combining hot and cold storage
• Enhanced user experience with competitive yields
• Advanced hardware security measures
• Quantum-resistant cryptography
• Diversified custody options for different needs

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