Decentralized finance (DeFi) is reshaping custody, moving from traditional intermediaries to blockchain-based safekeeping of digital and tokenized assets. Custodians face new challenges: safeguarding private keys, adapting to instant settlement, integrating smart contracts, and navigating fragmented regulations. Tokenization expands liquidity by fractionalizing real estate, private equity, and other illiquid assets, opening access to wider investor bases. Custodians must evolve into ecosystem orchestrators and data powerhouses, offering real-time insights, compliance automation, and global access. Success will depend on balancing innovation with risk management, security, and regulatory alignment to remain relevant in the digital era.

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