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Cybersecurity expert warns businesses to prioritize custody before digital asset transactions

Skipping foundational security steps could cost your business millions. A cybersecurity leader reveals why custody and governance must lead every digital asset strategy.

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1 min read
The image shows a diagram of the core mission area of a business, with different types of security...
The image shows a diagram of the core mission area of a business, with different types of security management and records management written on it. The diagram is composed of several blocks of different colors, each representing a different type of security system. The blocks are labeled with words such as "Security Management," "Records Management," and "Business Services." The colors of the blocks range from light blue to dark blue, indicating the different levels of security systems.

Cybersecurity expert warns businesses to prioritize custody before digital asset transactions

Businesses rushing into the digital asset economy often overlook critical first steps, warns a cybersecurity expert. Manny Khan, Deputy Chief Information Security Officer at BitGo, stresses that custody and governance must come before any transactions or tool selection. Without the right foundations, companies risk irreversible financial losses. Khan highlights custody as the very first decision any business should address. Choosing between hot and cold wallets depends on liquidity needs and how the company plans to use its digital assets. Yet many organisations skip this step, jumping straight to tools instead of building a secure framework.

Governance is another essential requirement before trading begins. A robust framework must cover people, processes, and technology to prevent vulnerabilities. Khan warns that simply handing digital asset management to an IT team without proper preparation can lead to costly mistakes. For businesses handling significant value, partnering with a regulated, institutional-grade provider may be the safer option. Khan advises against chasing trends, urging companies to align their digital asset strategy with their core business model. This approach ensures long-term security rather than short-term speculation.

As more companies enter the digital asset space, security remains a pressing concern. Khan’s framework puts custody and governance ahead of transactions to minimise risks. Without these safeguards, businesses could face avoidable financial and operational setbacks.

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