Crypto-Asset Custody Bridge

The Crypto-Asset Custody Bridge sits between your bank and the sub-custodians that hold digital assets for your clients. Your bank keeps the legal ledger of record for each client's positions, client instructions go through maker-checker approval and compliance checks before they are sent to the sub-custodian, and positions are reconciled with the sub-custodian's records every day. Moraph does not hold assets, private keys or funds; the sub-custodian holds the assets under its agreement with your bank.

The problem it solves

Banks that want to offer digital asset custody usually rely on a specialist sub-custodian to hold the assets and keys, but the bank still owes its clients an accurate record of what they own and evidence that every movement was authorized and checked. Without a layer of their own, banks end up depending on the sub-custodian's portal for their books, approving withdrawals by email, and reconciling positions in spreadsheets. Examiners then ask how the bank oversees the sub-custodian and how it would know if the records did not match.

Who it’s for

• Banks and trust companies offering or planning digital asset custody
• Custody and trust operations teams who process client instructions
• Heads of digital assets and fiduciary officers who own the service
• Compliance and BSA teams responsible for screening and recordkeeping
• Third-party risk, internal audit and examiners who oversee sub-custodians

1. OnboardClient custody accounts are opened in the Bridge and mapped to the matching segregated or omnibus account at the sub-custodian, and each digital asset the bank supports is approved before clients can hold it.
2. InstructDeposits, withdrawals and transfers are entered as instructions, checked against the client's mandate, allowlisted addresses and screening results, approved by a second person, and sent to the sub-custodian.
3. ReconcileEvery day, the bank's ledger is reconciled with the sub-custodian's positions and, where configured, with public blockchain balances for the addresses involved. Breaks are opened as items to investigate.
4. OverseeThe bank's oversight of each sub-custodian, from due diligence and control reports to incidents and exit planning, is recorded in one place for the board and examiners.

Ledger of record

The bank's own record of each client's positions by asset and account, updated only from confirmed instructions and kept independent of the sub-custodian's portal.

Maker-checker instructions

Every withdrawal and transfer is entered by one person and approved by another before it is sent, with limits your policy sets.

Address allowlisting

Withdrawals go only to addresses registered for the client and verified under your procedures, with changes subject to approval.

Pre-send compliance checks

Instructions are held until screening and travel rule information from your compliance tools are attached and clear.

Daily reconciliation

Positions reconciled with the sub-custodian's records, and optionally with public blockchain balances, with breaks tracked to resolution.

Sub-custodian connections

Instructions and confirmations exchanged with supported sub-custodians through their interfaces, with a manual path when an interface is unavailable.

Asset approval

Each supported asset is approved by your committee with its risk assessment, and clients can hold only approved assets.

Account segregation mapping

Each client account is mapped to segregated or omnibus accounts at the sub-custodian, so the bank can show which client owns what.

Client statements

Periodic statements of positions and activity produced from the ledger of record, with values from the pricing source you choose.

Sub-custodian oversight file

Due diligence, control reports, insurance evidence, incidents and review outcomes for each sub-custodian, kept for the board and examiners.

Exit and contingency planning

A current record of client positions by sub-custodian account, ready for transfer to another custodian if the relationship ends.

Exam-ready audit trail

Who entered, approved, sent, reconciled or changed what, and when, for every instruction, account and asset.

Custody operations analyst

Enters instructions, opens accounts and resolves reconciliation breaks

Operations approver

Approves or rejects instructions and address changes entered by others

Head of digital assets

Owns the service, approves assets, limits and sub-custodian oversight, and sees everything

Compliance officer

Reviews instructions held by screening or travel rule checks and oversees recordkeeping

Auditor or examiner (read-only)

Views the ledger, instructions, reconciliations and the audit trail, with no ability to change them

Administrator

Manages users, roles and connections without the ability to enter or approve instructions

Sub-custodians

Instructions, confirmations, positions and transactions exchanged with each supported sub-custodian through its interface, confirmed during implementation.

Core banking and trust accounting

Client and account records, fees and cash movements related to custody, so digital asset accounts sit alongside the client's other relationships.

Sanctions and blockchain analytics screening

Results from the screening and blockchain analytics tools your bank uses, attached to accounts, addresses and instructions.

Travel rule messaging

Originator and beneficiary information exchanged through the travel rule solution your bank uses, attached to each transfer.

Pricing source

Asset prices from the provider you choose, used for statements and reporting.

Single sign-on

Staff sign in through your identity provider (SAML or OpenID Connect).

Work API

Ledger, instruction and reconciliation data available to your data warehouse and reporting tools through the Moraph Work API.

Single sign-on

Staff sign in through your identity provider, so your password and multi-factor policies apply.

No keys or assets at Moraph

The Bridge never holds private keys, digital assets or funds. Assets and keys stay with the sub-custodian under its agreement with your bank.

Role-based access

Entering an instruction is separate from approving it, and administrators cannot do either.

Encryption and keys

Client data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.

Complete audit trail

Every view, change, instruction, approval and export is logged with the person and time, and cannot be edited.

Data residency

Data stays in the hosting region you choose: the United States, the United Kingdom or Australia.

Moraph cloud

Hosted and operated by Moraph in the United States region. United Kingdom and Australia regions are available for institutions outside the US.

Dedicated environment

A single-tenant environment for institutions whose policies require isolation, scoped in the proposal.

With a managed service

Optionally run alongside a Moraph managed service for sub-custodian connection monitoring and platform administration.

Operating model

We document how your custody service will run: account structures, supported assets, approval limits and the split of duties between your bank and each sub-custodian. We need your policies and a contact in operations and compliance.

Sub-custodian connection

Each sub-custodian's interface is connected and tested in its test environment, including confirmations and position files, before any live instruction is sent.

Compliance tool connections

Screening, blockchain analytics and travel rule tools are connected so instructions carry their results before approval.

Ledger opening balances

Where you already hold client assets through a sub-custodian, opening positions are loaded and reconciled with the sub-custodian before go-live.

Controls and roles

Maker-checker rules, approval limits, allowlist procedures and roles are configured to match your policies and tested with your team.

Training and go-live

Operations, compliance and approvers are trained on their own workflows, and the first live instructions are monitored together with your team.

• Moraph does not hold digital assets, private keys or funds, and is not a custodian. Assets are held by the sub-custodian under its agreement with your bank.
• Whether your bank may offer digital asset custody, and on what terms, is a matter for your bank and its regulators. The Bridge supports your controls; it does not grant permission to offer the service.
• It works only with sub-custodians whose interfaces are supported; others can be added by agreement after review.
• It does not perform sanctions screening, blockchain analytics or travel rule messaging itself. It uses the results of the tools your bank already has.
• It does not execute trades or provide access to exchanges or liquidity providers.
• Staking, lending and other activities beyond safekeeping and transfer are not included.
• Reconciliation depends on the sub-custodian supplying complete and timely position and transaction data.
• It does not provide accounting or tax treatment of digital assets; your finance team determines how they are recorded.

• Walk a withdrawal from client request to sub-custodian confirmation and check every control along the way
• Load a sample position file from your sub-custodian and review the reconciliation and breaks
• Confirm that nobody can both enter and approve the same instruction or address change
• Check how screening and travel rule results from your existing tools attach to instructions
• Review the sub-custodian oversight file against what your examiners have asked for
• Confirm how client positions would be produced for transfer if a sub-custodian relationship ended