Institutional crypto custody is at the centre of a broader shift in the digital asset space, with growing mainstream acceptance of crypto as a viable investment asset. Institutional investors in the UK, including pension funds, family offices, and asset managers, are increasingly looking at allocating a percentage of their portfolios to digital assets for returns, diversification, inflation protection, and long-term resilience.

As this shift accelerates, one piece of infrastructure has become essential: secure, compliant custody. For institutional investors, holding crypto involves safely managing private keys, meeting regulatory obligations, satisfying internal compliance teams, and operating with the standards expected in traditional finance.

UK-based and FCA-registered crypto investment platform coinpass offers institutional-grade custody that aligns with regulatory requirements and operational best practice. If you’re entering the digital asset market or expanding an existing allocation, coinpass gives you the confidence to hold digital assets securely and in full compliance with UK law.

Institutional investors have already begun to invest in digital assets as part of a long-term, risk-adjusted allocation strategy, although more broadly, after years of staying away, the signs are pointing to a tipping point where institutional investors will allocate capital to digital assets more broadly.

Some examples of such increased, and recent, activity come from Brevan Howard, Aberdeen Investments, andStandard Chartered. In 2024, the trustee of an unnamed UK pension scheme allocated 3% of its investment portfolio to Bitcoin. Cartwright, the firm that advised the scheme said, “Trustees are increasingly looking for innovative solutions to future-proof their schemes in the face of economic challenges. This Bitcoin allocation is a strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile.”

With increased investor uncertainty about more traditional havens for investment, such as the US stock market, digital assets have become harder to ignore. As a result, more institutional investors are examining how to invest in the space safely and compliantly.

To achieve this, institutional investors need more than market access. Other essentials are highly secure custody, regulatory alignment, operational clarity, and a partner who understands and supports full UK compliance.

Institutional investors cannot approach crypto custody the same way retail holders do. In traditional markets, custodians and clearinghouses manage the safekeeping of assets. In crypto, the responsibility for securing private keys often falls on the investor unless a qualified custodian is used.

This creates operational, regulatory, and security challenges. Self-custody raises questions about internal controls, access management, and key recovery. It also complicates auditability and compliance, particularly under UK regulations requiring clear asset management accountability.

A secure custody solution addresses these concerns by separating access duties, enabling transaction approval workflows, and offering structured protection such as cold storage, multi-signature protocols, and insurance coverage. It also supports reporting requirements and governance expectations.

As institutional exposure increases, so does the need for infrastructure that supports scale. Institutional crypto custody providers must meet the same standards expected across the rest of the portfolio.

When holding crypto, UK-based investors face strict regulatory, operational, and security requirements. coinpass provides institutional crypto custody solutions that align with these expectations under the oversight of the Financial Conduct Authority (FCA), where the firm is registered as a cryptoasset business.

Digital assets are held in cold storage using multi-signature wallets and distributed infrastructure. Each client’s assets are stored in segregated wallets to support clear accounting and ownership verification. Insurance coverage is in place to protect against defined risks, including internal failure or theft.

Institutions can configure access permissions to reflect their governance policies. This includes dual approval workflows, transaction thresholds, and role-based access restrictions. Hardware security modules are used to manage encryption and signing operations within a controlled environment.

Buy, sell, and trade Bitcoin, Ethereum, and 15+ other types of coins with speed and ease on coinpass. Additional tokens can be accommodated on request. Custody can be accessed on a standalone basis or combined with coinpass execution services, depending on the investor’s operating model.

Compliance is a central concern for any UK institution holding digital assets. Under Money Laundering Regulations, firms must ensure that institutional crypto custodians meet client identification, asset segregation, recordkeeping, and transaction monitoring standards.

coinpass is registered with the Financial Conduct Authority and follows the regulatory framework that applies to UK-based cryptoasset businesses. This includes full Know Your Customer (KYC) and Know Your Business (KYB) procedures during onboarding, as well as ongoing risk monitoring in line with AML obligations.

Coinpass offers account-level segregation, downloadable statements, and reporting features that assist with reconciliation and audit preparation to support internal compliance teams. These tools are designed to integrate into existing governance processes, helping clients satisfy both internal policies and external reporting requirements.

Data retention practices align with UK expectations, including those HMRC sets are aligned with UK expectations, including those set by HMRC. The custody infrastructure offers traceability and operational transparency for institutions preparing regulatory filings or undergoing external audits.

This setup provides a structured, compliant foundation for managing your digital asset exposure within the UK regulatory environment.

In the absence of traditional custodial frameworks, firms require a clear structure for safeguarding keys, controlling access, and responding to operational risk. That’s where robust crypto institutional custody becomes essential.

coinpass uses cold storage for institutional custody, with keys managed entirely offline in secure, geographically distributed facilities. A multi-signature setup ensures that no single person or location can authorise asset movement. All custody infrastructure is subject to internal security audits and risk reviews.

Institutions can configure access permissions to reflect their governance policies. This includes dual approval workflows, transaction thresholds, and role-based access restrictions. Hardware security modules are used to manage encryption and signing operations within a controlled environment.

Insurance coverage is provided for specific risks such as theft and internal failure, based on pre-defined terms and limits. This is not a substitute for security controls but an additional layer of protection that aligns with institutional risk frameworks.

The custody setup is designed to support secure, auditable, and compliant asset storage by combining physical and technical safeguards with policy-driven access and insurance.

Institutional onboarding with coinpass is designed to meet UK regulatory requirements while integrating into existing compliance and operational frameworks. The process begins with an initial consultation to assess custody needs, client structure, and any specific governance requirements.

coinpass then conducts full due diligence in line with FCA registration standards. This includes Know Your Business (KYB) checks, beneficial ownership verification, and Anti-Money Laundering (AML) screening. Supporting documentation is requested as part of this process, including proof of entity, corporate structure, and authorised signatories.

Once approved, you are assigned segregated custody wallets, and you can define access permissions based on your internal policies. Depending on the institution's risk management setup, this may include role-based controls or multi-person approval workflows.

Coinpass fully supports you during account setup to assist with permissions, reporting preferences, and system integration. We also provide ongoing relationship management to address any operational or regulatory updates over time.

This approach aims to provide you with a custody solution that meets both compliance obligations and day-to-day operational requirements.

As institutional involvement in digital assets grows, custody remains a critical foundation. For UK investors, this means working with providers that operate under local regulation, meet operational standards, and support institutional governance requirements.

A custody solution must do more than safeguard assets. It has to provide clear segregation, defined access controls, insurance coverage, and transparent reporting. These are essential components of institutional participation.

Coinpass delivers custody services that reflect these needs within the UK’s regulatory environment framework. For institutions looking to allocate to crypto while maintaining oversight and compliance, custody is the first and most important step.

Coinpass works with institutional investors like you across the UK to provide secure, compliant custody solutions for digital assets. If you’re making your first allocation or scaling an existing strategy, your UK-based coinpass team is here to support you.

To learn more about how institutional crypto custody can work for your firm, speak with your coinpass team today and discover a custody solution built for the future of finance.

Book a call with coinpass today.