As investor demand for digital assets increases, registered investment advisors (RIAs) have a growing list of considerations and challenges that must be addressed. RIAs must securely protect their assets under management in compliant ways while still maintaining operational efficiency. This highlights the importance of choosing the right digital asset partner — one that’s secure, reliable, and fully compliant.
As an RIA, here are 5 things to consider when choosing yours.
#1 Qualified Custodian
Qualified custodians are regulated entities that safeguard the assets on behalf of clients. They must meet rigorous standards and are subject to audits to ensure their continued compliance with those standards. This is important for RIAs as it helps them meet their fiduciary responsibilities. Qualified custodians must keep their client funds segregated from other assets securing the assets and protecting their clients. They must maintain accurate records and provide regular reports to their clients.
#2 Security
Securing digital assets includes a wide range of features and functionality. This can include cold storage where the assets are stored on machines that aren’t connected to the internet — so hackers can’t get to them. The custodian should maintain insurance against theft or loss of keys, have redundant security processes in place, and otherwise use the highest levels of secure technologies and best practices to protect the digital assets.
#3 Portfolio management and reporting
Ensure that the digital asset partner of choice provides innovative tools to manage, analyze, and report on digital asset holdings within client portfolios in intuitive ways. This can include smart order routing, easy rebalancing capabilities, staking, access to deep, aggregated liquidity with a vast network and more.
#4 Experience and reputation
Make sure that the partner you’re considering has a proven track record, dedicated to custody as a core function — with a solid reputation for security, reliability and known industry expertise. Experienced partners have a greater ability to efficiently settle trades and otherwise have the knowledge and expertise to perform custodial functions. Although it’s easy to make a case that each of the factors described here is vital, the reputation and trustworthiness of your partner certainly is a top aspect when you make your selection.
#5 Scalability and integration
As your RIA business grows, you’ll need a partner that can scale alongside you, meeting your needs every step of the way: in technology and business practices while keeping up with industry changes in real time. As a related point, you’ll want a partner that can smoothly integrate their technologies and procedures with yours to work hand-in-hand with you to protect client assets. Seek out a frictionless experience that eliminates barriers and empowers you to optimally serve clients.
What’s next?
Choosing the right digital asset partner is crucial for RIAs looking to navigate the exciting world of digital assets. By prioritizing these 5 considerations — qualified custodianship, security, portfolio management tools, experience and scalability, RIAs can ensure their clients’ assets are protected and their digital asset strategy thrives.
To learn more about how the BitGo companies are helping RIAs reach their digital asset potential as their secure, reliable and compliant partner of choice, contact us today.
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BitGo is the digital asset infrastructure company, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have been focused on accelerating the transition of the financial system to a digital asset economy. With a global presence and multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, and millions of retail investors worldwide. For more information, visit www.bitgo.com.
©2025 BitGo, Inc. (collectively with its parent, affiliates, and subsidiaries, “BitGo”). All rights reserved. BitGo Bank & Trust, National Association (“BitGo Bank & Trust”) is a national trust bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). BitGo Bank & Trust is a wholly-owned subsidiary of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, California. Other BitGo entities include BitGo, Inc. and BitGo Prime LLC, each of which is a separately operated affiliate of BitGo Bank & Trust.
BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.
Digital assets are subject to a high degree of risk, including the possible loss of the entire principal amount invested. Past performance and illustrative examples do not guarantee future results. The value of digital assets can fluctuate significantly and may become worthless. No BitGo communication is intended to imply that any digital asset services are low-risk or risk-free. BitGo is not a registered broker-dealer and is not a member of the Securities Investor Protection Corporation (“SIPC”) or the Financial Industry Regulatory Authority (“FINRA”). Digital assets held in custody are not guaranteed by BitGo and are not subject to the insurance protections of the Federal Deposit Insurance Corporation (“FDIC”) or SIPC. Custody and other digital asset services are subject to eligibility, jurisdictional, and regulatory restrictions. Availability of specific products and services may vary by location and entity.
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