{"id":2798,"date":"2025-09-20T14:00:57","date_gmt":"2025-09-20T14:00:57","guid":{"rendered":"https:\/\/usafe-ca.com\/?p=2798"},"modified":"2025-09-20T14:00:57","modified_gmt":"2025-09-20T14:00:57","slug":"the-rise-of-digital-custody-in-singapore-what-businesses-should-know","status":"publish","type":"post","link":"https:\/\/usafe-ca.com\/zh\/2025\/09\/20\/the-rise-of-digital-custody-in-singapore-what-businesses-should-know\/","title":{"rendered":"The Rise of Digital Custody in Singapore: What Businesses Should Know"},"content":{"rendered":"

Introduction<\/h3>\n

Singapore has positioned itself as a leading hub for innovation in financial services. With the Monetary Authority of Singapore (MAS)<\/strong> pushing forward initiatives like Project Guardian<\/em>, tokenisation and digital assets are moving from concept to reality. As more businesses and investors interact with these assets, the importance of digital custody<\/strong> has grown significantly.<\/p>\n

Digital custody is not just about storing tokens. Instead, it builds trust, ensures compliance, and protects both businesses and investors in a rapidly evolving financial ecosystem.<\/p>\n

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What is Digital Custody?<\/h5>\n

Digital custody refers to the safekeeping and administration of digital or tokenised assets<\/strong> on behalf of clients. Much like traditional custody services for securities, it ensures that assets remain secure, accessible, and properly accounted for.<\/p>\n

Key functions of digital custody include:<\/p>\n

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    Secure Storage:<\/strong> Custodians protect digital assets from theft or cyberattacks by using encryption and secure wallets.<\/p>\n<\/li>\n

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    Transaction Verification:<\/strong> They authorise and record transfers accurately on distributed ledgers.<\/p>\n<\/li>\n

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    Segregation of Assets:<\/strong> Licensed providers keep client assets separate from their own holdings.<\/p>\n<\/li>\n<\/ul>\n

    Unlike traditional custody, which relies on central depositories, digital custody operates on distributed ledger systems. Therefore, it requires new frameworks for cybersecurity, key management, and regulatory oversight<\/strong>.<\/p>\n

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    MAS Guidelines on Digital Custody<\/h5>\n

    MAS recognises that as tokenised assets grow in use, safeguarding them must meet the same high standards<\/strong> as traditional financial products.<\/p>\n

    The regulator therefore expects custodians to follow strict principles:<\/p>\n

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      Licensing and Supervision:<\/strong> Digital custodians hold appropriate licences under the Payment Services Act or Securities and Futures Act.<\/p>\n<\/li>\n

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      Segregation of Client Assets:<\/strong> Custodians keep client holdings separate to prevent misuse or commingling.<\/p>\n<\/li>\n

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      Operational Resilience:<\/strong> They implement strong cybersecurity, disaster recovery, and independent audits.<\/p>\n<\/li>\n

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      Transparency and Accountability:<\/strong> Providers maintain clear records and give reliable reporting to both clients and regulators.<\/p>\n<\/li>\n<\/ul>\n

      These requirements ensure that tokenised assets integrate safely into Singapore\u2019s financial system without compromising on trust or investor protection<\/strong>.<\/p>\n

      Central Registers of Nominee Directors and Nominee Shareholders in Singapore<\/a><\/p><\/blockquote>\n