Crypto custody solutions provider Zodia Custody and Hogan Lovells law firm have released a joint paper on digital asset custody. This comes in anticipation of rising investments in digital assets over the next few years.
With increasing numbers of firms diversifying their offerings and embarking on digital assets projects, the paper aims to provide a better understanding of digital asset custody to the industry. This includes demystifying the process and explaining the differences between traditional and digital asset custody.
The paper also outlines historical context, including existing and current regulatory frameworks across the EU and UK.
A lack of clarity is a significant issue, the paper states, which in addition to an anticipated global recession demonstrates increased risk to clients. Through this paper, Zodia Custody and Hogan Lovells intend to help firms effectively plan ahead.
John Salmon, partner at Hogan Lovells, says: “With new and exciting projects being explored, institutions are gaining confidence in the use of digital assets and are beginning to dip their toes into this world.
“In collaboration with Zodia Custody, we wanted to bring clarity to the complexities of digital asset custody, combining our collective legal, technical and operational knowledge throughout the paper, with the aim of demystifying the process and highlighting the key questions that should be asked when entering into a custody arrangement.”
Julian Sawyer, CEO of Zodia Custody, comments: “The need for institutions to have a clear understanding of the factors to account for when entering the digital asset space is more crucial than ever, and this report from Hogan Lovells and Zodia Custody highlights the important role of custody.”
On Monday, SFT provided a review of Securities and Exchange Commission chair Gary Gensler's recent comments on asset protection risk in the crypto asset sector.
