Custody & Safeguarding
Cold Storage
Crypto-asset storage offline (not connected to the internet) — ESMA RTS requires 80%+ of client crypto-assets in cold storage.
Definition
Cold storage holds private keys offline — air-gapped, hardware-secured, geographically distributed. Protects against network-based attacks. ESMA's 2025 RTS on safeguarding requires CASPs to hold at least 80% of client crypto-assets in cold storage.
Regulatory citation
ESMA RTS on safeguarding