In the digital assets space, custody is slowly becoming the key theme of the ecosystem amid increasing use of digital assets and Web3 applications in enterprise and institutional use.
Rising cyber fraud and operational breaches have placed digital asset custody into sharp focus, turning it into a key-level priority rather than a backend technical function.
So far, much of the debate on digital assets has focused on innovation, regulation, and market adoption. However, with increasing focus on digital assets custody, the real shift is happening in the infrastructure part.
Custody is a service for the control and security of digital assets, different from wallets, where one accesses their assets. Custody is not just about holding assets safely, but also about who can access them.
“Digital assets are fundamentally different from traditional financial instruments,” said Manhar Garegrat, Country Head – India at Liminal Custody. “They are natively digital, irreversible by design, and extremely sensitive to access controls. That changes how security, risk and accountability need to be approached.”
Liminal Custody, as an institutional-grade digital asset custody and wallet infrastructure provider, focuses on enabling enterprises, exchanges and institutions to manage digital assets securely, with strong governance and operational controls.
No longer optional
In an environment where fraud risks continue to rise, and digital assets are becoming part of mainstream enterprise operations, it can be said that custody is no longer optional infrastructure, but the backbone on which the credibility and longevity of the digital asset ecosystem will depend.
As fraud in the digital asset ecosystem grows more sophisticated, with attackers exploiting human workflows, operational loopholes, and weak internal controls around wallets, it is important to define who can access digital assets, under what conditions, and with what level of oversight.
“Most failures we see across the ecosystem are not technology failures,” Garegrat noted, adding that they are failures of process, governance, and accountability.
The relevance of custody has also grown as Web3 use cases mature beyond experimentation.
Enterprises exploring tokenisation, on-chain settlement, and digital representations of real-world assets require security frameworks as robust as those of existing financial systems.
This transition has also altered who participates in custody decisions. What was once managed by engineering teams is now drawing in CISOs, risk committees and compliance leaders. Digital asset custody is increasingly evaluated alongside broader cybersecurity and enterprise risk frameworks.
As the industry looks ahead to 2026, Garegrat believes custody will define the next phase of sustainable digital asset adoption.
“Exchanges today have trading, brokerage, and custody under one roof. By the end of 2026, we expect a clear shift toward segregation of duties and third-party custody to prevent systemic failures,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
