New Direction in Institutional Custody: How Does the Hybrid Model Balance Security and Flexibility

【Crypto World】A custodial service provider recently launched a unique solution in institutional asset custody—the hybrid custody model. The core idea is as follows: 90% of assets are locked in insured cold wallets to ensure maximum security; the remaining 10% are managed in self-controlled hot wallets to retain operational flexibility.

This ratio design is very interesting. The cold wallet portion is managed by professional institutions, aligning with the latest compliance standards in SEC announcements, ensuring asset security and regulatory compliance. Meanwhile, the hot wallet portion provides institutions with adjustment space, preventing complete immobilization.

More importantly, this solution is integrated into a unified control panel. Institutions can manage asset allocations of different risk levels on the same interface, achieving both safety and compliance as well as operational efficiency. Compared to the industry norm, most institutions either manage everything in-house (high risk) or entrust everything to third parties (limited flexibility). This hybrid route indeed fills the middle ground.

For institutional investors, this offers a new option in custody methods.