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Is Your Crypto Safe If Your Custodian Goes Bankrupt?

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Is Your Crypto Safe If Your Custodian Goes Bankrupt?

No institution moves into digital assets until it knows who will hold them and what happens to those assets if that custodian fails.

This panel looks at custody as the gating issue for institutional adoption in Malaysia, where licensing is in place but enforcement is still catching up with Hong Kong and Singapore. The panellists see banks entering the space as partners that grow the market, while tokenised assets raise a new test of whether the token matches the record behind it. On safety, they treat insurance as the last line of defence, with segregation and layered key controls doing most of the work.

Banks and crypto-native custodians are more likely to partner than compete, in the same way banks rely on card networks they never built

With tokenised assets, holding the token does not establish ownership if the on-chain and off-chain records diverge

Before choosing a custodian, ask whether your assets survive its insolvency, who can move them without your approval, and how access is restored if systems fail



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