The Future of Crypto Custody: Centralized to Decentralized

The future of crypto custody: from centralized to decentralized

Overview

Where is digital asset custody heading? In this MERGE Madrid panel, BitGo, Sygnum Bank, Crypto Finance and Ashgraph (the team behind Hedera) debate how we move from a traditional model to a decentralized one: crypto's institutional maturity, the role of regulation, the balance between self-custody and professional custody and the rise of tokenization.

What you'll learn

• Institutional maturity: what signals show crypto is ready
• Regulation: how MiCA, FINMA and BaFin bring certainty to the sector
• Self-custody vs professional custody: why it is a matter of choice
• Inheritance and security: multisig, keys and the succession problem
• Centralization and DeFi: taking the best of both worlds
• Tokenization: RWAs, financial inclusion and access to new assets

Session summary

Institutional maturity: Sygnum Bank explains that products such as a Bitcoin yield fund are only possible when regulatory clarity, the right market infrastructure and real client demand come together.

Regulation: Crypto Finance and BitGo agree that regulation (MiCA, FINMA, BaFin) brings legal certainty and, although it requires heavy compliance work, helps large banks enter the sector; they stress that adoption without regulation will not happen.

Value of the technology: Ashgraph (Hedera) and BitGo highlight the “trustlessness” of smart contracts and the need for a business trust layer (banks and regulators) on top of the technology trust layer.

Custody and choice: the panel agrees custody is a matter of choice: users or institutions can self-custody or delegate to a qualified custodian; they discuss multisig, combining technical and physical custody, the risks (such as the major exchange hack cited in the talk) and the problem of key inheritance.

Tokenization and inclusion: it presents real-world asset tokenization cases (from a work of art to funds once reserved for large tickets) that democratize access and support financial inclusion, with cross-chain interoperability as a pending challenge.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with BitGo, Sygnum Bank, Crypto Finance and Ashgraph (Hedera) on the future of custody.

FAQs

What is digital asset custody?
According to the talk, the service of holding and protecting the keys to crypto assets, whether by the user (self-custody) or by a regulated professional custodian.

Self-custody or professional custody?
According to the panel, it is a matter of choice and risk appetite; institutions usually need qualified custodians for regulatory reasons.

What does regulation bring to custody?
According to the talk, legal certainty and common rules that drive institutional adoption and innovation.

Is this investment advice?
No. This content is informational and summarizes what was presented in the panel; it does not constitute investment or legal advice. Consult a professional for your specific situation.