Transforming custodian services with distributed ledger
Key takeaways
Streamline workflows
Distributed ledger technology (DLT) and Daml smart contracts empower you to simplify processes, increase automation and reduce costs. Welcome to a new dawn in processing efficiency.
Automate tax processing and compliance
With DLT and Daml smart contracts, you can automate almost every element of tax processing and settlement procedures in local markets to prevent large tax fees and ensure compliance. A single source of truth means you’re acting on the most accurate data.
Go global and increase security
Manage your digital assets on a global scale and monitor all interactions between global and local custodians in real time. Read our paper and explore a world of opportunity in global custody services characterised by total transparency and tightened security.
Blockchain Custody FAQs
Why is blockchain important for digital asset custody?
Blockchain plays a critical role in digital asset custody because it enables transparent ownership tracking and secure transaction validation across distributed networks. As financial institutions begin supporting cryptocurrencies and tokenized assets, traditional custody systems must evolve to handle new security, compliance, and transaction requirements.
Distributed ledgers provide an immutable record of asset ownership and transaction history, helping institutions meet regulatory and audit requirements. Smart contracts can also enforce governance rules for digital asset transfers and custody processes.
To understand how blockchain infrastructure can support both traditional securities and digital assets, download the full report.
How do smart contracts support custody and post-trade processes?
Smart contracts automate contractual obligations and transactions on a distributed ledger. In custody services, they can automatically execute processes such as tax documentation, corporate actions, and settlement workflows once predefined conditions are met.
Using smart contract languages such as Daml allows financial institutions to encode business rules directly into the transaction process. This helps ensure that asset ownership records, permissions, and workflows are executed consistently across all parties in the custody network.
By automating these processes, custodians can reduce operational complexity while improving transparency and auditability.
The full Thought Leadership report explains how smart contracts can transform post-trade custody operations.
How can financial institutions implement secure digital asset custody?
Financial institutions can implement secure digital asset custody by combining institutional security infrastructure with blockchain-specific key management. At its core, digital asset custody requires secure storage and governance of private keys, which control access to blockchain-based assets.
Many banks and custodians use technologies such as multi-party computation (MPC), hardware security modules (HSMs), and segregated custody environments to reduce operational and cyber risks. In addition, institutions must address regulatory compliance, transaction monitoring, and integration with existing custody platforms and core banking systems.
As digital assets become more relevant in capital markets, institutions are increasingly evaluating scalable custody architectures and governance models.
For a deeper overview of custody frameworks, technology options, and strategic considerations, download the Thought Leadership on blockchain and custodian services.
