Research Reports
How we assess custody and counterparty risk
Our methodology note on evaluating custodians, venues and lending counterparties, published without a paywall so allocators can reuse it.
Polychain Risk7 min read
Most losses in this asset class have come from counterparty failure rather than market moves. Our diligence weight reflects that: we spend more time on where an asset sits than on the thesis for owning it.
The checklist
Every counterparty is scored on the same five dimensions before any capital moves.
- Legal structure and asset segregation
- Regulatory status in the operating jurisdiction
- Proof of reserves and audit cadence
- Key management and withdrawal controls
- Behavior during the last market stress event
Why we publish it
Methodology is not proprietary edge. If more allocators run this checklist, the whole market loses less money, which is good for everyone with a long-term mandate here.
Custody
Counterparty
Methodology