The Future Of Institutional Crypto Runs Through Prime Brokerages
Cointelegraph
Institutional crypto is evolving by separating custody from trading, driven by prime brokerages and off-exchange custody to mitigate counterparty risk.Summary
The crypto industry is shifting toward traditional finance practices, prioritizing the separation of custody and execution to manage counterparty risk. By utilizing off-exchange custody and prime brokerages, institutions can trade assets while keeping them in regulated, independent storage. This infrastructure, supported by the use of yield-bearing collateral like U.S. Treasurys, provides institutional-grade risk management and capital efficiency that is essential for the market's professional growth.
(Source：Cointelegraph)