SEC Warns on Crypto Custody Amid Tokenization Pilots and Bank Charters

The U.S. Securities and Exchange Commission cautions on digital asset custody as regulators approve tokenization initiatives and banking licenses for Circle, Ripple, and Paxos.

Summary

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Terms & Concepts
  • Tokenization: The process of converting rights to an asset into a digital token on a blockchain.
  • Crypto Custody: Secure storage and management of digital assets, often by regulated institutions.
  • Bank Charter: An official license allowing institutions to operate as banks under regulatory oversight.