Digital Asset Custody CoordinationInstitutional Digital Asset Management & Custody Coordination
DAG Wealth provides fiduciary investment management, while directing client asset placement exclusively through top-tier, independent qualified custodians. Custody infrastructure is coordinated for family offices, foundations, endowments, and corporate treasuries that require institutional-grade controls, board-ready reporting, and documented governance.
Section 01
Three ways institutional crypto custody fails
Most institutions arrive holding digital assets in one of three ways, each with a different failure mode. Understanding them clarifies why coordinated access to independent qualified custody exists.
Exchange custody
When institutional assets sit on an exchange, the institution does not own coins; it owns a claim against the exchange's database. In a bankruptcy, that claim sits behind other creditors.
Self-custody
Hardware wallets get lost, seed phrases get lost, and key-person risk becomes a governance issue. Doing this correctly at institutional scale is a full-time operational function most organizations don't want to build.
Pooled custody
Some platforms commingle client assets. If something goes wrong, individual institutional ownership becomes hard to establish during recovery proceedings.
Section 02
The Architecture of Your Independent Qualified Custodian
Segregated accounts. Held in the institution's name on the custodian's books. Not pooled with other clients. Not on the custodian's balance sheet.
Cold storage and multi-signature authorization. The independent custodian holds all private cryptographic keys and manages the execution environment. DAG Wealth maintains limited trading authority to execute authorized portfolio re-balancing instructions, while the client maintains final corporate governance approval.
Bankruptcy-remote structure. Assets are property of the client, not the custodian. In a hypothetical custodian failure, segregated assets would be identifiable and recoverable.
Withdrawal governance. Whitelisted addresses, dual-control approvals, and time-delays on outbound transfers. Designed to prevent both insider risk and key compromise.
Insurance coverage. Crime and specie coverage carried by the custodian, subject to policy terms, limits, and exclusions disclosed in custody documentation.
Audit and attestation. SOC 1 / SOC 2 reporting and proof-of-reserves attestations available for review during onboarding.
Not on our books
DAG Wealth holds investment authority on the account. We never hold private keys, never custody assets on our balance sheet, and never pool client assets.
Section 03
Exchange vs self-custody vs independent qualified custody
| Dimension | Exchange | Self-custody | Independent qualified custody |
|---|---|---|---|
| Asset ownership | Claim against exchange | Direct (you hold keys) | Direct (held in your name) |
| Bankruptcy treatment | General unsecured creditor | Outside bankruptcy | Segregated, bankruptcy-remote |
| Key management | Exchange controls | You control | Custodian cold storage + multi-sig |
| Governance / succession | Account access only | Reliant on seed transfer | Documented, fiduciary transfer |
| Insurance | Varies, often none | None | Crime / specie, subject to policy |
| Audit & attestation | Varies | None | SOC 1 / SOC 2 + proof of reserves |
Section 04
Moving into independent qualified custody
01
Custody review
We map where institutional assets sit today (exchanges, wallets, lending platforms) and the risk each carries.
02
Account setup
Open accounts at the appropriate independent qualified custodian in the institution's, foundation's, endowment's, or corporate entity's name.
03
In-kind transfer
Move assets from exchanges and wallets into independent qualified custody. Coordinated to avoid taxable events where possible.
04
Governance
Whitelist addresses, set approval thresholds, document policy-committee and successor authority, and put audit trails in place.
Section 05
Reporting your policy committee and auditors can use
Daily holdings and valuations
Position reports available on a daily basis, including end-of-day pricing and net asset value. Position and transaction reports are synchronized daily based on data feeds provided directly by the independent qualified custodian.
Transaction records
Every trade documented with timestamp, venue, and counterparty. Records synchronized daily from the independent qualified custodian's data feed.
Policy-committee ready
Reporting formatted for board packs, investment-committee minutes, and external auditor requests.
Section 06
What the DAG relationship provides
Custody access
Asset safeguarding handled via fully independent, qualified institutional custodians subject to federal or state banking oversight.
Investment advisory
Fiduciary digital asset portfolio construction and management through DAG Wealth, an SEC Registered Investment Advisor.
Questions
Frequently asked
Next step
Institutional assets. Institutional custody. Documented governance.
Most engagements start with a custody review: where the institution's digital assets sit today, the risk each location carries, and what a move into independent qualified custody would look like.
DAG Wealth is an SEC Registered Investment Advisor with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training. DAG Wealth acts as a fiduciary with respect to its advisory clients and does not act as a qualified custodian.
Independent qualified custody is provided by third-party institutional custodians. Custody documentation, fee schedules, insurance terms, and conflicts of interest are disclosed in writing before any engagement. Investing in digital assets involves risk, including the possible loss of principal.
Compliance
DAG Private Client services involve estate matters that require qualified independent counsel in the applicable jurisdiction. LLC formation, trust drafting, and estate planning services are provided in coordination with or by qualified independent legal counsel licensed in the applicable jurisdiction. DAG is not a law firm, does not provide legal or tax advice, and does not provide tax preparation services; tax matters are handled through referrals to qualified tax professionals. DAG is not a financial advisor and does not provide financial advice. Investment advisory services are available through DAG Wealth. Digital Wealth Partners LLC (CRD No. 328627) is an SEC Registered Investment Advisor. Form ADV and Form CRS are available upon request or at www.adviserinfo.sec.gov. Registration with the SEC does not imply a particular level of skill or training.
Asset protection structures, including Wyoming LLCs and trusts, do not guarantee protection against all claims, creditors, or losses. Outcomes depend on specific facts, jurisdiction, and applicable law. The information on this page is for general educational purposes and is not legal or tax advice.