Role Purpose
The Custody Officer is responsible for the secure safekeeping of client virtual assets and the associated control tools, including private keys and cryptographic material. This role is the operational owner of the organization's custody arrangements, including the relationship with external licensed custodians, wallet architecture management, daily reconciliations, and incident response for custody-related events.
Key Responsibilities
- Manage the end-to-end custody lifecycle, including client virtual asset deposits, internal transfers (hot, warm, and cold wallets), withdrawals, and settlements.
- Oversee wallet architecture, including dedicated client deposit wallets, omnibus wallets, quarantine wallets, and hot/warm/cold wallet distribution strategies.
- Execute and verify daily three-way reconciliations between internal records, custodian records, and distributed ledger data.
- Manage relationships with external licensed custodians, including SLA monitoring, incident escalation, and periodic performance reviews.
- Implement and maintain key management procedures, including multi-signature controls, key rotation schedules, backup and recovery testing, and access logging.
- Coordinate with AML/CFT teams regarding quarantine wallet procedures for flagged virtual asset deposits.
- Maintain and test custodian failure response plans covering scenarios such as custodian default, license revocation, cyberattacks, and service disruptions, including migration to alternative custodians when required.
- Ensure segregation of client assets from proprietary company assets at all times.
- Participate in asset listing reviews to assess custody feasibility and operational readiness for new virtual assets.
- Prepare and report custody metrics, incidents, reconciliation results, and risk-related updates to senior management and governance committees.
Requirements
Education
- Bachelor's degree in Computer Science, Information Technology, Finance, or a related field.
Experience
- Minimum 2 years of experience in digital asset custody, wallet operations, or key management within a Virtual Asset Service Provider (VASP), cryptocurrency exchange, institutional custody provider, or similar environment.
- Experience with institutional custody platforms such as BitGo or equivalent solutions is strongly preferred.
- Proven hands-on cryptocurrency custody experience is mandatory.
Technical Skills
- Strong understanding of blockchain architecture, including:
- UTXO and account-based models
- Transaction signing processes
- Gas and transaction fee mechanisms
- Blockchain confirmation requirements
- Practical experience with:
- Multi-signature wallet configurations
- Hardware Security Modules (HSMs)
- Cold storage procedures
- Cryptographic key management practices
- Familiarity with major blockchain networks, including Bitcoin, Ethereum, and additional Layer 1 or Layer 2 networks.
- Ability to analyze and interpret on-chain transactions for reconciliation, monitoring, and investigations.
- Working knowledge of smart contract interactions, including token approvals, staking, wrapping, and associated custody risks.
Regulatory Knowledge
- Understanding of virtual asset custody regulations, standards, and industry best practices.
- Knowledge of client asset protection principles and segregation requirements.
- Understanding of the operational and regulatory distinctions between omnibus custody models and segregated custody models.
Preferred Competencies
- Strong analytical and problem-solving skills.
- Attention to detail and ability to operate within highly controlled environments.
- Experience managing critical incidents and operational risk events.
- Strong communication and stakeholder management skills.
- Ability to work effectively across Compliance, Operations, Technology, Risk, and Finance teams.
