As digital asset markets mature, firms are looking beyond storage and asking a deeper question: What does institutional-grade custody actually look like? The answer extends beyond wallet structure. Effective custody infrastructure should balance security, liquidity, privacy, and operational resilience while giving institutions the flexibility to participate in digital assets at scale. At Fidelity Digital Assets, our custody model combines robust key management and risk controls with asset segregation. Assets are distributed across multiple wallets, addresses, key groups, and storage environments, while ownership and entitlements are maintained through rigorous controls. This approach is designed to support: • Privacy by reducing direct linkage between blockchain addresses and client holdings • Risk management through the distribution of assets across multiple wallets and storage environments, avoiding concentration in any single location • Liquidity by maintaining access to assets needed to facilitate trading, transfers, and client activity at any time while the majority of assets remain protected in deep cold storage • Flexible entitlement structures and infrastructure designed to scale to meet the evolving and unique client operational needs Combined with 24x7 on-site security, hardened storage facilities, and multi-person approval requirements, these measures are designed to help eliminate single points of failure while supporting the highest standards of asset protection. As institutions evaluate custody providers, understanding how assets are safeguarded is as essential as understanding where they're held. Interested in learning more about our approach to institutional digital asset custody? Get in touch: