# kaal:claim:3606663-015

**Claim.** Institutional investors face a distinct barrier beyond volatility: fiduciary responsibility to their clients limits the type of risk they may take on, and the lack of custody solutions recognized by regulators compounds the problem.

**Type.** failure  **Support.** argued

**Holds when.**

- institutional investors subject to fiduciary duties
- early 2020s absence of regulator recognized custody solutions

**Source quote.**

> While larger institutional players face the same issues, they are also limited by their fiduciary responsibility to their clients, which limits the type of risk they can be exposed to. Compounding these challenges is the lack of stable custody solution(s) that are recognized by the regulators.

**From.** Kaal, *Digital Asset Market Evolution* (2020), 4. Regulatory Uncertainty, page 37

**Cite as.** Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663

**Verify.** sha256 of source PDF `d1d4a15a293b715bb6a5a32e689f59c3a1587915039ba9a1cf4eeb8ee2a1e57c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Digital%20Asset%20Market%20Evolution.pdf

**Failure mode.** fiduciary and custody constraints block institutional entry  (family: adoption-and-usability-barrier)

**Topics.** institutional-design, corporate-governance, defi, economics

**Keywords.** institutional-investors, fiduciary-duty, custody, regulatory-uncertainty, market-adoption

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3936876-022
- extended_by: https://wulfkaal.github.io/claims/3936876-023
- restated_by: https://wulfkaal.github.io/claims/3936876-003

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.