IDEAS home Printed from https://ideas.repec.org/a/oup/refreg/v11y2025i1p73-97..html
   My bibliography  Save this article

Crypto Custody: An Empirical Assessment

Author

Listed:
  • Dirk Zetzsche
  • Areti Nikolakopoulou

Abstract

This article provides a comprehensive dataset on the terms and conditions (T&Cs) set by leading providers of crypto custody and wallet services. The sample studied reveals a dichotomy within the crypto custody industry: some custodians seek to protect their clients’ rights and interests while others provide T&Cs at odds with any meaningful client protection. In such an environment, financial regulation can serve three purposes. It can promote a level playing field for crypto custodians, ensure an adequate level of client protection regardless of client due diligence, and reduce the likelihood of costly disputes, thereby lowering both information asymmetry and transaction costs.This article provides an overview of how crypto-assets are held in custody before outlining the research sample. The article then presents findings on custody practices, including safekeeping, key storage, outsourcing, asset segregation, insolvency protection, client entitlements, reuse, liability cap, and choice of law, courts, and arbitration. Finally, the argument and conclusion are set out.

Suggested Citation

  • Dirk Zetzsche & Areti Nikolakopoulou, 2025. "Crypto Custody: An Empirical Assessment," Journal of Financial Regulation, Oxford University Press, vol. 11(1), pages 73-97.
    • Handle: RePEc:oup:refreg:v:11:y:2025:i:1:p:73-97.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jfr/fjaf004
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:refreg:v:11:y:2025:i:1:p:73-97.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jfr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.