Crypto & Stablecoin Infrastructure · Use case

Custody assets for a regulated product

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Short answer

Custody decides who controls the keys and who is liable if assets are lost. For a regulated product, look for authorised custody, segregation of client assets, clear key-management design and insurance terms you have actually read.

What this use case is

Custody decides who controls the keys and who is liable if assets are lost. For a regulated product, look for authorised custody, segregation of client assets, clear key-management design and insurance terms you have actually read.

Who builds this

Neobanks and brokers adding crypto
Asset managers
Exchanges
Treasury teams

What your customer sees

  1. 1Holdings shown in the app
  2. 2Withdrawals processed reliably

How Crypto & Stablecoin Infrastructure solves it

1

Custody accounts set up per client or omnibus

Custody accounts set up per client or omnibus

2

Deposits credited after confirmations

Deposits credited after confirmations

3

Keys managed by MPC or HSM with policies

Keys managed by MPC or HSM with policies

4

Withdrawals approved by policy and screened

Withdrawals approved by policy and screened

5

Records reconciled on-chain and off-chain

Records reconciled on-chain and off-chain

6

Reporting and audits

Reporting and audits

Want to have

  1. Authorised custody in your markets
  2. Segregation of client assets
  3. Key-management design
  4. Withdrawal policies and approvals
  5. Screening of transfers
  6. Reconciliation and reporting
  7. Audit reports

Optional

  1. Staking
  2. Insurance
  3. Proof of reserves

Design decisions

Model

Provider custody
Third-party qualified custodian
Self-custody technology

simplicity versus control and liability.

What to put in your RFP

Permissions

  • Permissions

Segregation

  • Segregation

Key management

  • Key management

Policies and approvals

  • Policies and approvals

Insurance terms

  • Insurance terms

Reporting and audits

  • Reporting and audits

Commercials

  • Commercials
Add these to an RFP

How to evaluate providers for this use case

  1. 1Permissions and audits
  2. 2Segregation
  3. 3Operational controls
  4. 4Insurance terms

Pitfalls

  • Omnibus structures without clear client records
  • Relying on insurance headlines
  • No tested recovery process

What providers will ask you

  1. Assets and volumes
  2. Client types
  3. Your permissions and policies

Other Finlane categories that cover parts of this

This use case is solved mainly with Crypto & Stablecoin Infrastructure. These categories cover specific parts of it and can be tendered alongside it.

Fraud & AML Monitoring

Screening deposits and withdrawals

RegTech & Compliance Ops

Reporting and controls

Frequently asked questions

Other Crypto & Stablecoin Infrastructure use cases

Add a fiat on/off-ramp to a wallet or app

Let users buy and sell crypto with cards, bank transfer or local methods, with KYC handled by the provider.

Settle B2B payments in stablecoins

Move USD/EUR value across borders on stablecoin rails with instant settlement and automatic fiat conversion.

Issue stablecoin-linked cards

Combine a wallet with card issuing so users can spend their stablecoin balance anywhere cards are accepted.

Scope custody assets for a regulated product with Crypto & Stablecoin Infrastructure providers

Scope this use case