# What will a custodian check for your tokenized fund? - Author: [Victoria Wells](https://ape.law/victoria-wells) - Published: 2026-08-01 - Updated: 2026-09-24 [Funds, Finance & Transactions](https://ape.law/blog/category/funds-finance-transactions) Separate regulator custody duties from a custodian’s own due diligence on title, segregation, keys, records and redemption. [![Portrait of Victoria Wells](https://ape.law/brand/victoria-wells-square.png) By Victoria Wells](https://ape.law/blog/authors/victoria-wells) Published 1 August 2026 · Updated 24 September 2026 · 2 min read ![Man viewing a tokenized fund inside a secure glass vault.](https://ape.law/assets/blog/legacy/518e811983dd446c75a7878fc77da90ff4d3a87c51471fb2b0b07324e7e06a35.webp) A tokenized fund can have custody of the underlying asset, fund cash, token records and private keys in different hands. A prospective custodian will need to understand those roles before accepting a mandate. Its commercial due-diligence requests are not automatically requirements imposed by every UAE regulator. ## What should you be ready to show? - **Title and rights:** who owns the underlying assets and what the fund unit or token gives its holder. - **Segregation:** which assets belong to the fund, its investors and service providers, and how those positions are recorded. - **Control:** who can move assets or keys, how instructions are authorised, and how lost keys or failed transfers are handled. - **Records:** which register is authoritative, how on-chain and off-chain records are reconciled, and who fixes errors. - **Exit:** how subscriptions, redemptions, transfers, distributions and a wind-down will work in practice. These are preparation questions. A particular custodian may request a legal opinion or extra controls under its own policy. Do not describe every such request as a universal legal duty. ## Which rulebook applies? The regulator, fund, asset and service determine the custody requirements. ADGM FSRA’s [virtual-asset guidance](https://assets.adgm.com/download/f7702902704711efa4c3fe3e7821af93), paragraphs 144–147, points relevant VA custodians to COBS Chapters 15–17 and discusses reconciliation. Before calling an item compulsory in a transaction, check the current operative [FSRA rulebook](https://en.adgm.thomsonreuters.com/) and the exact permission. DIFC property questions may also require the [DIFC Digital Assets Law](https://www.difc.com/business/laws-and-regulations/legal-database/difc-laws/digital-assets-law-difc-law-no-2-of-2024). These sources govern different jurisdictions and issues. ## What should you settle before approaching custodians? Draw the asset, cash and token flows; identify each legal owner and service provider; prepare governing documents and a control matrix; and test an investor redemption or failed transfer. Ask the custodian which requests come from its regulatory duties and which come from its risk policy. This makes a quoted custody model reviewable. ## Sources and notes - [ADGM FSRA, Guidance on Regulation of Virtual Asset Activities](https://assets.adgm.com/download/f7702902704711efa4c3fe3e7821af93), paragraphs 144–147: guidance referring to COBS custody and reconciliation provisions; use current operative COBS text for a specific legal requirement. - [ADGM FSRA rulebook](https://en.adgm.thomsonreuters.com/): operative ADGM provisions must be matched to the licence and asset. - [DIFC Digital Assets Law No 2 of 2024](https://www.difc.com/business/laws-and-regulations/legal-database/difc-laws/digital-assets-law-difc-law-no-2-of-2024): DIFC-specific property framework, not an ADGM custody rule. *Updated 24 September 2026. General information, not a legal opinion on a proposed fund or custodian mandate.* **General information only** This article is general education and does not constitute personal legal, tax, financial, investment or regulatory advice. Rules, programmes and regulatory positions can change. Obtain advice from appropriately qualified professionals who understand your facts and the relevant jurisdictions before acting. Relevant legal service ## Tokenized Fund Structures Connect the token to the fund interest, investor rights, manager and custody arrangements behind it. [Plan a tokenized fund](https://ape.law/services/tokenized-fund-structures) [Discuss your situation](https://ape.law/#contact) [tokenized funds](https://ape.law/blog?q=tokenized%20funds) [custody](https://ape.law/blog?q=custody) [ADGM](https://ape.law/blog?q=ADGM) [client assets](https://ape.law/blog?q=client%20assets) ![Portrait of Victoria Wells](https://ape.law/brand/victoria-wells-square.png) About the author ## Victoria Wells Principal & Co-Founder Victoria leads Ape Law’s Web3 legal practice across licensing, tokenization and regulation. She is also a founding partner of Project Get Out. [View profile and articles](https://ape.law/blog/authors/victoria-wells) Keep reading ## Related articles. ![Man opening a secure bank vault with a glowing digital token.](https://ape.law/assets/blog/legacy/7fcbfe4e24a0334cdd59b9560ce02d86e04c3cc829f8083c5fedb197e1c5be94.webp) Funds, Finance & Transactions ### [What will you need for a UAE crypto business bank account?](https://ape.law/blog/uae-crypto-business-bank-account-requirements) Prepare ownership, source-of-funds, activity and licence evidence; separate VARA’s capital rule from each bank’s onboarding policy. ![Portrait of Victoria Wells](https://ape.law/brand/victoria-wells-square.png) Victoria Wells3 August 20262 min read ![Singapore and Cayman flags compared for a UAE-connected crypto fund.](https://ape.law/assets/blog/legacy/2f2b69b5222f96d352a962d2b7468701110cc1d350e19e2fd23c78ee979bf12f.webp) Funds, Finance & Transactions ### [Should Your Crypto Fund Use Singapore, Cayman or the UAE?](https://ape.law/blog/singapore-vs-cayman) Compare crypto-fund structures by manager location, investors, vehicle, custody, tokenization, tax and service providers rather than jurisdiction slogans. ![Portrait of Stephan Roberto](https://ape.law/brand/stephan-roberto-square.png) Stephan Roberto14 October 20253 min read ![Graphic reading ‘Hyperliquid DeFi Powerhouse’ with the Hyperliquid logo.](https://ape.law/assets/blog/legacy/a6e9dbbc288e103206853b50837e483b31318d8dcbec716bbd3c54522080be63.webp) Funds, Finance & Transactions ### [HyperLiquid: The DeFi Powerhouse Redefining Onchain Trading & More](https://ape.law/blog/hyperliquid) Hyperliquid's L1 blockchain and DEX revolutionize DeFi with onchain order books, community-first ethos, and HYPE token's stellar performance explained. ![Portrait of Victoria Wells](https://ape.law/brand/victoria-wells-square.png) Victoria Wells17 December 202410 min read Canonical page: https://ape.law/blog/tokenized-fund-custodian-requirements