8 months ago
Custody Crucial for Digital Asset Security Amid Fraud Risks
Digital asset custody is becoming very important as more people and companies use digital assets and Web3 applications.
Custody is like a secure vault for digital assets, ensuring only the right people can access them.
Unlike wallets, which you use to access your assets, custody is about keeping them safe and controlling who can use them.
Experts say that digital assets are different from traditional money, so they need special security measures.
As fraud in the digital world gets more complicated, having good custody services is no longer optional.
It's becoming the backbone of the digital asset world.
By 2026, experts predict that exchanges will separate their trading, brokerage, and custody services to prevent big failures.
This shift is important for the long-term success and credibility of digital assets.
Digital asset custody is becoming a critical focus due to rising cyber fraud and operational breaches.
Custody services control and secure digital assets, differing from wallets which provide access.
Experts emphasize the need for robust security frameworks as digital assets become mainstream.
Enterprises and institutions are increasingly involving CISOs and compliance leaders in custody decisions.
By 2026, a shift towards segregated duties and third-party custody is expected to prevent systemic failures.
- Who
- Enterprises, exchanges, institutions, and digital asset users
- What
- The growing importance of digital asset custody for security and fraud prevention
- Where
- In the digital asset and Web3 ecosystem
- When
- Currently and projected to be more significant by 2026
- Why
- Due to rising cyber fraud, operational breaches, and the need for robust security frameworks
Key facts
- Primary Focus
- Digital asset custody
- Rising Concerns
- Cyber fraud and operational breaches
- Key Players
- Enterprises, exchanges, institutions
- Expert Opinion
- Manhar Garegrat, Liminal Custody
- Future Prediction
- Segregation of duties by 2026
- Current Trend
- Increasing focus on custody infrastructure
- Security Requirement
- Robust security frameworks for Web3 use cases
Quotes
Manhar Garegrat
Country Head - India at Liminal Custody
“Digital assets are fundamentally different from traditional financial instruments. They are natively digital, irreversible by design, and extremely sensitive to access controls. That changes how security, risk and accountability need to be approached.”
livemint.com
“Exchanges today have trading, brokerage, and custody under one roof. By the end of 2026, we expect a clear shift toward segregation of duties and third-party custody to prevent systemic failures.”
livemint.com
