Securing Tokenized Real-World Assets: Best Practices in Custody
The custody layer is the backbone of tokenized Real-World Assets. Without robust custody, tokenized art, real estate, or commodities become targets for loss, disputes, and insurance gaps. This article exposes the attack surfaces and the countermeasures that separate confidence from catastrophe.
- Custody Models for Physical Assets
- Insurance and Third-Party Verification
- Security Measures and Access Control
- Compliance and Dispute Resolution
Custody Models for Physical Assets
Custody for RWAs spans vaults, licensed custodians, and hybrid models that pair physical safeguards with digital custody. A robust setup uses insured storage, regular audits, and tamper-evident processes. For a deeper look at tokenization in DeFi and how it intersects with custody, see Real-World Asset Tokenization in DeFi: Unlocking New Opportunities.
Providers should tailor custody by asset class—art, antiques, and luxury goods demand insured storage, climate control, and dedicated personnel. The goal is precise provenance and reliable recoverability in case an asset is ever contested or misplaced.
Insurance and Third-Party Verification
Insurance is a baseline safeguard against loss. Pair it with rigorous third-party verification so ownership and provenance remain auditable. For authoritative guidance on digital-asset custody, visit BIS, and review how tokenized assets integrate with established custody standards. See also Real-World Asset Tokenization in DeFi for practical interfaces between custody and tokenization.
Security Measures and Access Control
Guardrails must separate permissions from intent. A vulnerability is a tripwire; a Trojan horse lurks when access rights exceed safeguards. Implement multi-factor authentication, strict role-based access, and independent reconciliation. Regular red-team testing helps reveal where a campaign of weaknesses could begin, keeping attackers from finding their moment of entry.
Compliance, Insurance, and Dispute Resolution
Compliance with KYC/AML rules and clear dispute-resolution procedures reduce friction when provenance is questioned. Align custody with insurance policies to ensure coverage remains active through asset transfers and platform updates. For broader context on risk management in crypto projects, consider the Risks of Social Media-Driven Crypto Projects article as a reminder to balance hype with due diligence.
