Institutional Custody Will Challenge Retail-Oriented Crypto

Institutional Custody Will Challenge Retail-Oriented Crypto


The institutions are coming. The herd is arriving. Institutional participation in the digital asset market is imminent. 

As this happens, it’s worth considering how the entry of highly regulated financial companies will change the marketplace infrastructure for crypto, which, until now, has been largely oriented to retail investors. Institutions will have different and higher requirements across the transaction chain, notably in the custody of digital assets. 

Phil Mochan is the co-founder and head of Strategy & Corporate Development at Koine, an international digital assets custody and settlement platform.

Digital assets are bearer assets, raising implications for trading and safeguarding, and surfacing considerations for institutional asset managers looking to allocate capital to a digital asset fund.

Bearer assets

With a bearer asset, ownership is determined by possession alone. If I hold a $10 note, it’s mine. If I hold a $300 million bearer bond, it’s mine. In the same way, if I

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