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Key Takeaways
- Qualified custodians like Anchorage Digital provide institutional-grade security and up to $50 million in insurance coverage per person for digital assets stored in their vaults.
- Institutional custody allows digital assets to transfer directly to designated beneficiaries without going through probate, functioning like traditional bank accounts and individual retirement accounts when an owner dies.
- Holding digital assets with a qualified custodian enables third-party verification of ownership, facilitating agreements with fiduciaries to offer asset-backed loans against custodied digital assets.
What's the benefit of moving your digital assets from an exchange or cold wallet to institutional custody?
- Insurance. Work with us at DAG and you get access to qualified custodians-2) like Anchorage Digital. Their vaults carry institutional-grade security and up to $50 million in insurance coverage per person. Other providers rarely come close to that figure. You can usually find some coverage on your own, but not at this level.
- Beneficiaries that actually inherit. Putting your digital assets in a trust or LLC, signing an operating agreement, drafting a will, none of that guarantees a clean handoff. When someone dies with money in a bank account or IRA, the named beneficiaries get the funds without going through probate. That's how traditional accounts work. Your digital assets should work the same way, and institutional custody gets you there.
- Loans against your assets. You own your assets, and a third party can verify that ownership. We're negotiating terms with fiduciaries that let clients borrow against digital assets sitting with the qualified custodian. Once those terms are in place, we can offer asset-backed loans.
Want to talk about institutional custody for your digital assets? Get in touch.
Frequently Asked Questions
How much insurance coverage is available through qualified custodians for digital assets?
Qualified custodians like Anchorage Digital provide institutional security and insurance coverage up to 50 million dollars per person for digital assets stored in their vaults. This level of coverage is rarely matched by other providers and exceeds what individuals can typically secure on their own.
How does institutional custody help digital assets pass to beneficiaries without probate?
Traditional accounts like bank accounts and retirement accounts transfer money directly to named beneficiaries without going through probate when the owner dies. Legal documents like trusts, operating agreements, and wills do not guarantee a clean handoff for crypto holdings. Institutional custody allows your digital assets to transfer to designated beneficiaries just like traditional accounts.
Can you borrow money against digital assets held in institutional custody?
Yes, holding digital assets with a qualified custodian enables third-party verification of your ownership. Terms are being negotiated with fiduciaries to allow clients to borrow against these custodied digital assets. Once these agreements and terms are finalized, asset-backed loans against the verified assets can be offered to clients.