What is self-custody?
Custody is about the protective care or guardianship of security tokens. From a purely technical perspective, the wallet that holds the security tokens is the custody solution. When security tokens move from the investors wallet to a exchange, or custodian, they change custody.
Self-Custody Made Easy
The 'XSC' Security Token Contract that governs security tokens in the Dusk Network, is designed in such a way to maximize security, and minimize risks of fraud and theft. Shareholders can choose to self-custody and rely on a myriad of measures. One of these measures is the enforcement of whitelists, which only allows registered, and fully-vetted individuals to trade security tokens. Other preventive measures are threshold and multi-signatures that are supported by the wallet software, and the ability of the issuing company to freeze and force-transfer 'misplaced' security tokens at their discretion. Yet, for institutional investors, high net worth individuals and corporations that is not enough. Additional security measures are warranted against potential threats.
Institutional Security Token Custody providers are regulated entities that provide custody solutions to aforementioned parties. They offer professional solutions that cater to the many demands of their clients. From a security perspective, these can be cold storage safekeeping, authorization checks and permission management. Additional services may include providing access to trading venues and liquidity, asset-backed borrowing, data analytic capabilities, a tailored user experience and more.
Zero-Knowledge Utility Tokens address the industry's privacy concerns with public blockchain technology. ZK tokens leverage zero-knowledge proof (ZKP) systems to enable both privacy and compliance to be maintained on a public and permissionless blockchain.See more