Digital Asset Custodian

A digital asset custodian refers to an individual or organization entrusted with the responsibility of safeguarding valuable assets on behalf of an investor or client. When it comes to digital assets such as BTC and ETH, the custodian’s primary task is to ensure their protection.

Unlike traditional assets, the custody of digital assets requires advanced security measures and internal controls to guarantee the safe and secure storage of clients’ assets. Digital assets come with their own unique risks. For example, if an individual loses their private key, they will lose access to their assets, posing a significant long-term risk.

As a result, many institutions choose to appoint a third-party custodian to manage and store their digital assets. These digital asset custodians typically need to obtain a license from a regulatory body in their jurisdiction to ensure that safety measures and security protocols align with industry standards.

The author of this piece is Varit Bulakul, the president of investment banking and digital assets at The Brooker Group. The Brooker Group is a publicly listed financial consultancy and capital management company based in Thailand. Prior to joining The Brooker Group, Varit worked as an auditor at Deloitte in Bangkok. He holds a BA in Science in Accounting and Finance from Lehigh University and a master’s degree in Accounting from Boston College.