GLOSSARY · BLOCKCHAIN & WEB3
Qualified Custodian
What a qualified custodian is: the authorised entity that may custody third parties' assets with segregation and supervision — and why institutions require one.
WHAT IS IT? · FOR DUMMIES
A qualified custodian is an entity authorised and supervised to safekeep third parties' assets: real segregation, capital that answers, audits and a supervisor to report to. It is the difference between "we keep your keys" and "we are legally liable for your assets" — and the condition institutional investors set before coming in.
WHAT IS IT? · PRO
In crypto-assets the role is played by CASPs authorised for custody under MiCA (see the CASP license) and, for tokenized securities, by the entities allowed to custody financial instruments (banks, investment firms). The marks of a qualified custodian: audited asset segregation, documented MPC or multisig, insurance or regulatory capital, and contingency and key-succession plans.
For an issuer, choosing a qualified custodian is not a luxury: it defines who can invest (institutional mandates require it) and what happens to the assets if the platform disappears — the full analysis is in crypto-asset custody, and how it compares with MPC, multisig and wallet-as-a-service in crypto custody providers.
01 / Key points
- Entity authorised and supervised to custody third parties' assets
- In crypto: CASPs with custody; in securities: authorised entities
- Marks: audited segregation, documented technology, capital that answers
- Usual condition of institutional mandates
02 / Advantages
- Legal liability and a supervisor behind it
- Opens the institutional door to the issuance
- The assets survive the platform
03 / Disadvantages
- Higher cost than unregulated solutions
- Slower onboarding and operations
- Few providers with full authorisation yet