A market overview of custody for digital assets

To take digital assets to the next level of consumer adoption, instilling confidence in assets will be necessary to attract all types of investor groups, for this the role of digital asset custodians will be critical.

This report from Deloitte Middle East and the Dubai Financial Services Authority (DFSA) examines the current landscape of custodial services for digital asset owners and explores some of the considerations for investors, custodians and regulators to help the market grow in a safe, secure and stable manner.

The report explores five areas to help increase knowledge of digital assets and its custody whilst also raising awareness of the key considerations within the sector:

  1. The types of digital assets: Currently there are broadly five types of digital assets available to consumers. The assets are popularized by cryptocurrencies but there are other assets also available for investment purposes.
  2. The characteristics and options for custody of digital assets: There are characteristics of digital assets from both the digital nature of them to inherent security features which means there are various custody options available to users.
  3. The importance of digital asset custodians: As the digital asset market continues to grow, the role of custodians to maintain the safekeeping of these assets is becoming ever more important.
  4. The challenges facing digital asset custodians: Despite increasing global interest, the current digital asset custodians continue to face difficulty in striking the correct balance between usability and safety.
  5. The regulatory landscape: At present the digital asset regulatory landscape is characterized by uncertainty over whether existing custodial frameworks are applicable to digital assets or if there is a need to put in additional systems or controls.

Download the report to learn more about digital assets, the questions surrounding the custody of these assets and the current local regulatory perspective on the sector. If you would like to discuss the report, and learn what these findings mean for your business please contact a Deloitte executive or a DFSA representative.