Asset Tokenization in Financial Markets 2025

Contents17 ARRANGEMENT Description Private keys Signing patterns Multisig or MPC Multisig or MPC Multisig or MPC Yes Yes Yes Segregated Segregated or individual Reduced risk of key loss No single entity controls keysFast, efficient asset transfers Recovery of keys possibleSegregated or omnibus Enterprise-level security Reduced operational risk Centralization risk: single entity controls assetsOperational complexity: coordinating multiple custodians/signersPlatform risk: possible platform failures Financial institutions that are transacting or storing a large value of assetsInstitutions demanding a degree of distributed securityRetail investors prioritizing ease of access while remaining protected Moderate Moderate LowSingle signerThird-party custodian retains full controlDesignated users have shared controlEnd user has primary control, while the wallet service provider acts as a backupEnd user retains full control No Individual Increased user control Ideal for privacy No recovery: no ability to recover lost keys DeFi users and privacy-focused investors valuing full control HighRecoverability Account structure Advantages Trade-off Applicability RiskA third-party custodian holds and manages private keys on behalf of users or institutions, making this ideal for institutional clients requiring regulatory compliance, security and operational efficiency.Requires multiple parties to approve transactions by distributing control using multiparty computation (MPC), balancing security and decentralization while reducing reliance on a single entity.Integrates custody solutions into applications via APIs or SDKs, offering businesses flexible digital asset management while leveraging MPC for enhanced security and granting end users some control.Users retain full control over their private keys and digital assets without intermediaries, requiring secure key management while ensuring full sovereignty and responsibility.FULL CUSTODYCOLLABORATIVE/SHARED CUSTODYHOSTED/EMBEDDED CUSTODYSELF/NON-CUSTODIALTABLE 2 Flexible custodial arrangementsValue proposition