The increasing volume and value of digital assets necessitate attention to secure storage and management.
Security Against Threats
Self-custody, while convenient, exposes assets to various risks. A notable risk is the case of James Howell losing 8,000 bitcoins due to a discarded hard drive. In contrast, digital custodians use hardware security modules and offline storage to protect assets.
Digital Asset Custodians
Digital custodians are regulated entities offering secure storage and management services. Their practice adheres to high security standards and includes layered protection protocols and asset insurance.
Stability and Owner Confidence
With the growth of digital assets and tightening of regulations, self-managing keys becomes challenging for owners. Custodians ensure regulatory compliance and protect assets from cybercrime, offering stability and confidence to clients.
In the expanding digital asset market, security and stability are paramount. Utilizing digital custodians helps mitigate risks and secure assets.
