risk managementred flagcustodial risk concentration
Custodial Risk Concentration
Why it matters

Failure, freeze or misconduct at a concentrated custodian can instantly render all customer assets illiquid, triggering large user losses and regulatory intervention.

Risk Triggers
  • Bank Run

  • Regulatory Enforcement

  • Custodian Bankruptcy

  • Operational Outage

Controls & Mitigations

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Risk profile

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