Liminal secures FSP license from FSRA in ADGM   Read more

Liminal Launches Its Most Awaited Digital Asset Custody Platform

| March 5, 2024

Share this article

The advent of digital asset custody has come a long way, evolving invariably from self-custody wallets to multi-sig setup to third-party custody infrastructure, pushing the boundaries of how institutions park their assets in a secure and compliant environment.  

Much like traditional custody practices, digital asset custodians are now moving towards implementing institutional grade measures, compliance adherence, and higher transactional throughput in an attempt to make their accessibility safe, legal, and trusted. 

To simplify security, compliance, and operational excellence, we are officially launching our digital asset custody platform to step into this burgeoning use case and bridge the gap for institutions looking to adopt a fully managed custody platform to provide unparalleled security, compliance, and peace of mind.

Introducing Liminal Custody

At Liminal Custody, we understand the unique challenges institutions face when managing digital assets. From securing private keys to navigating complex compliance regulations, our platform is built to address these challenges head-on. Our custodial services are backed by rigorous integrations, a proprietary risk monitoring engine, fund segregation, bank-grade key management practices, and extensive fund deployment opportunities.

Solving Key Challenges In Custody

The key to effective digital asset custody lies in addressing institutions’ fundamental challenges. Here’s how Liminal Custody tackles these challenges:

Secure Private Key Management: Our solutions maintain the confidentiality of private keys through a combination of offline and distributed storage mechanisms. This ensures that sensitive cryptographic material remains secure and inaccessible to unauthorized parties.

Compliance Navigation: Staying compliant with evolving compliance requirements is essential for institutions operating in the digital asset space. Liminal Custody ensures adherence to the latest compliance norms like Travel Rule, PMLA, KYC/KYB, AML & CFT, providing institutions with the confidence to navigate complex landscapes.

Scalable Transaction Processing: With the increasing volume of digital asset transactions, scalability is paramount. Liminal Custody’s platform is equipped to handle high volumes of transactions with industry-leading SLAs, ensuring seamless transaction processing even during peak periods.

Reliable Insurance: In the event of unforeseen circumstances, insurance coverage provides an added layer of protection for institutional assets. Liminal Custody offers the highest asset-to-insurance coverage ratio in the world, providing institutions with peace of mind and financial security.

Customized Governance: Effective governance is essential for ensuring the security and integrity of digital assets. Liminal Custody provides a suite of governance tools, including a layer between transaction initiation and signing for risk and compliance monitoring, user-defined roles, and customized teams, enabling institutions to maintain maximum control over their digital asset holdings.

The Liminal Advantage: Revolutionizing Institutional Custody

Liminal Custody is redefining the norms of institutional custody by offering a comprehensive suite of products and services that set a new standard for security, compliance, and innovation. Here’s how we’re revolutionizing institutional custody:

Institution-Grade Key Management: Our platform utilizes FIPS 140-2 validated HSMs and distributed signing with multisig wallets to ensure the highest standards of key management security.

Best-in-Class Security Protocols: Liminal Custody is the only custodian in the world with CCSS Level-3 certification, demonstrating our commitment to industry-leading security protocols. We also maintain industry-standard SOC 2 Type II, ISO 27001 & 27701 certifications, undergo continuous vulnerability & penetration testing, and employ 24/7 SOC monitoring to ensure the security of institutional assets.

Proprietary Firewall Engine: Our proprietary Firewall Engine provides advanced transaction risk analysis, withdrawal/deposit threshold monitoring, Travel Rule compliance checks, behavioral anomaly detection, and user-defined policy adherence detection, enabling institutions to mitigate risks and ensure compliance with compliance requirements.

White Glove Service: At Liminal Custody, we understand that every institution is unique. That’s why we offer white-glove service, including a dedicated account manager, concierge onboarding, premium support, and tailored and customized assistance to meet the specific needs of each institution.

Governance Control: Our platform provides robust governance controls, including 2FA authentication, user management, policy management, team management, and liveliness checks, empowering institutions to maintain maximum control over their digital asset holdings.

Access an Insolvency-Proof Trust Structure

At Liminal Custody, we are redefining custody parameters for institutions by creating a trust-free system that allows our clients to operate without any counterparty risk. 

Our trust structure offers a multi-layered approach to security, ensuring the utmost confidence in the integrity of digital assets. Assets held off the balance sheet provide a layer of protection against any risks associated with Liminal’s financial situation. At the same time, our strict policy of no rehypothecation guarantees that clients retain complete control and ownership of their assets.

Additionally, our proof of reserve mechanism offers transparent and verifiable custody of assets, providing immediate access to institutional-grade reports. Segregated accounts further bolster security by separating client and Liminal assets, eliminating any possibility of commingling. Furthermore, our rigorous periodic reconciliation processes continuously monitor account balances to detect and promptly address any discrepancies.

With the highest asset-to-insurance coverage ratio in the industry, our insurance coverage offers unparalleled protection for digital assets, providing peace of mind even in volatile markets. At Liminal Custody, we prioritize the security and integrity of institutional assets, offering a robust trust structure that sets new standards for digital asset custody.

Deploy Your Funds Strategically with Liminal Hub

Liminal Custody goes beyond traditional custody services, integrating core ecosystem features to help institutions expand their liquidity with a comprehensive suite called Liminal Hub. 

One key feature of Liminal Hub is institutional staking, allowing institutions to earn rewards on their digital assets by participating in staking programs. This offers a unique opportunity to generate additional income while maintaining custody of assets securely.

Facilitating off-exchange settlement is another critical function of Liminal Hub, enabling seamless settlement of digital assets outside traditional exchange platforms. This enhances flexibility and efficiency in managing digital assets, giving institutions greater control over their transactions.

Liminal Hub empowers institutions with a comprehensive risk management gateway. This gateway connects them with our trusted insurance partners, enabling them to build and customize insurance plans that cater to their specific needs and risk tolerance.

Additionally, institutions can leverage Liminal Hub for collateral lending and borrowing, unlocking liquidity by using their digital assets as collateral. This opens up new avenues for capital deployment and investment strategies, enhancing financial flexibility and opportunity.

Furthermore, Liminal Hub provides access to a comprehensive ecosystem of partners, allowing institutions to develop exclusive collaborations with investors, web3 projects, law firms, and more. This fosters networking opportunities and expands institutional reach within the digital asset community.

By consolidating a host of trading, insurance, and liquidity features in Liminal Hub, we are enabling institutions to add more functionality to their custody operations with a complete asset deployment suite. 

Secure Custody for Every Institution

Liminal Custody is committed to providing secure custody solutions for institutions of all types. Whether you’re a private equity firm, hedge fund, corporate treasury, law enforcement agency, exchange, or OTC desk, we have you covered. Here’s how we cater to each institution:

Private Equity & Venture Capital Firms: Establish investor confidence with secure custody, exchange connections, and collateral management.

HNIs & Family Offices: Secure your assets and manage succession/inheritance planning to minimize risk and enhance governance controls.

Hedge Funds: Deploy your funds securely and efficiently without any third-party risk.

Corporate Treasuries: Benefit from a robust custodial platform and explore investment opportunities in the digital asset space.

Law Enforcement Bodies: Collaborate with us to create standardized custody solutions compliant with CCSS guidelines.

Exchanges: Reduce downtime and enhance security with our always-on wallet infrastructure.

OTC Desks: Streamline workflows with pre-defined policies and pre-signed transactions.

Leading the Evolution of Digital Asset Custody

As we stand at the forefront of the digital asset custody revolution, our journey from building a self-custody infrastructure primarily for exchanges to a custodian now, we have transformed and pivoted our tech stack to support the ecosystem and lay the foundation for secure, intelligent, and scalable custody of digital assets. 

From securing private key management to navigating complex compliance regulations, we are pushing the envelope of safe usage of digital assets across the ecosystem, which starts by eliminating all the risk profiles for institutions. Our commitment to excellence is evident in our institution-grade key management, best-in-class security protocols, and insolvency-proof trust structures.

The following step in our journey as a digital asset custodian is to become a fully regulated custodian, fostering close collaboration with regulatory authorities. This unwavering commitment will give institutions the confidence to operate in a fully compliant and secure environment, adhering to our jurisdictions’ strictest licensing and compliance guidelines.

Join us as we change the outlook of digital asset custody, taking the stride of managed custody to new heights. With Liminal Custody, the future of institutional custody is brighter, more secure, and more innovative than ever before.

Disclaimer: Liminal has not yet launched its regulated custody platform in the United Arab Emirates (UAE). The commencement of regulated custody operations in the UAE is contingent upon receiving a full license from the regulatory authorities in the Abu Dhabi Global Market (ADGM) and the Virtual Asset Regulatory Authority (VARA). Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Liminal does not provide legal, tax, or financial advice. Liminal is not responsible for loss of funds, data, or business disruptions arising out of user negligence or normal course of business. Users must secure their assets and acknowledge inherent risks, such as technical issues, evolving regulations, third-party hacks, and market volatility. Digital assets are not legal tender, and the transactions may be irreversible. Users should carefully assess these risks before using the platform.

More on Crypto

As we move toward standardized and regulated usage of digital assets, it is remarkable to see more jurisdictions develop improvised versions of compliance with laws to help individuals and institutions stay safe and resilient. ……
May 23, 2024
Hello world, it’s that time of the month when we share the biggest security breaches in the world of Web3……….
May 21, 2024
The digital assets market, having surpassed $2.4 trillion in market capitalization, is fast changing its status quo. With the onset of Bitcoin ETFs powered by leading market participants, digital assets are now being categorized as a verified asset class. ……
May 13, 2024

Find Out How You Can Benefit From A Fully Self-Custodial Wallet Architecture