Navigating the digital asset space comes with its own set of unique challenges, particularly around the lack of security. To top it off, the downfall of FTX et al. proved that secure custody isn’t just about protecting your assets from theft or loss, but also from misuse.
For institutional investors in particular, a lot more is at risk. To ensure the full protection of their assets, choosing the right counterparties with industry knowledge and expertise is a must.
While there are many custody providers in the digital asset space, choosing the right one is a different story. It all boils down to trust, and who is given the trust to safekeep your organization’s assets. But how exactly do you make such a decision?
Choosing the right custodian for your organization requires a holistic evaluation of not just one, but several aspects: security, trust, accessibility, and connectivity to name a few. Here are several key considerations when deciding on your trusted custodian.
Consideration #1: Security
Consideration #2: Trust
Consideration #3: Accessibility
Consideration #4: Connectivity
Hex Trust is a fully-licensed and insured provider of bank-grade custody for digital assets. Our utmost priority is to ensure full protection of our clients’ digital assets, and we do so by putting our clients at the forefront of all our operations. We do things the right way – by obtaining licenses in the jurisdictions we operate in, adopting rigid security measures and processes, providing insurance for additional safety, and more. Find a full overview of our regulation, security, and compliance practices here.
Understanding the digital asset space moves at a pace unmatched by any other industry, Hex Trust is also dedicated to helping our clients stay ahead of the curve. Based on client interest, we support a broad range of digital assets including crypto, NFTs, security tokens, and more, as well as DeFi connectivity to a range of Web3 ecosystems. We commit to client-tailored solutions and respond to our clients’ needs in a timely manner.
This also means serving tailored custody solutions to best suit their organizational needs. We offer a range of custody models, both for long-term investors as well as more frequent traders.
For long-term investors with only an occasional need to trade, Hex Trust offers cold wallet solutions. Funds can be moved to an exchange’s trading wallet only when a trade is to be made, and with the proceeds of the trade moved back to the security of the client’s wallet immediately after the trade has settled.
For more frequent traders, moving assets between wallets may not necessarily be practical, and other models can be used. Some options currently used or considered to increase asset security include:
Hex Trust is a fully-licensed digital asset custodian that provides solutions for protocols, foundations, financial institutions, and the Web3 ecosystem. We have offices in Singapore, Hong Kong, Dubai, Italy, and Vietnam.