TheDefiant says institutional crypto custody should be assessed by separating control functions rather than looking only at where tokens are held. In its guide, the outlet notes that keeping tokens with a bank does not prevent those assets from being pledged for a loan. It also says firms comparing custody services should distinguish among three areas: safekeeping of assets, signing permissions, and the authority to sell collateral before making side-by-side evaluations. The piece frames those roles as central to understanding how institutional custody arrangements actually work and where control sits within a given setup.
A guide from TheDefiant says institutions evaluating crypto custody arrangements should separate key control functions instead of focusing only on whether tokens are held at a bank.
The article states that keeping tokens with a bank does not rule out pledging those assets for a loan.
Three areas to separate before comparing providers
According to TheDefiant, institutions should distinguish among safekeeping, signing permissions, and the authority to sell collateral before comparing custody services. The guide presents those roles and control points as the basis for assessing an institutional crypto custody setup.
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