Build vs. Buy: Institutional Digital Asset Infrastructure

Recognizing the growing adoption of digital assets, more and more financial institutions are now integrating cryptocurrencies, tokenized securities, stable coins and other digital assets into their operational strategy.

A key consideration is how to establish the necessary technical infrastructure. Weighing the path of in-house development ('Build') against leveraging specialized external solutions ('Buy') is a common challenge, particularly given the dynamic of the market and evolving regulatory. Understanding core of this decision is essential, as it significantly influences future operations, resource allocation, and compliance management.

This overview compares the operational aspects and regulatory requirements of building a system in-house versus outsourcing to specialized providers like Trever.

In-house Development (Build)

• Building Expertise for all related Processes: Institutions have to build up strong inhouse expertise about the complete digital asset ecosystem. This includes technical as well as operational processes, which are highly complex in this dynamic market.
• Development, Documentation & Maintenance: Complete conceptualization, architecture design, software development, implementation of security measures, testing (functional, security, performance), deployment, and operation of the entire infrastructure has to be considered. This also includes ongoing bug fixing, security patching, adaptation to new protocol updates, and continuous development of functionalities.
• IT Security: The institution bears full and direct responsibility for complying with all technical and operational requirements e.g., DORA, MiCAR, GDPR, etc. Complete documentation and auditability of all systems and processes are necessary to enhance IT security measures like business continuity management or disaster recovery.

Outsourcing / Leveraging Specialized Providers (Buy)

• Integration: Connecting Trever’s solution to the existing systems and internal processes via APIs enables to manage digital asset key processes in a single system.
• Overall Responsibility: The institution remains fully responsible to the regulator for outsourced processes. Trever adheres to the stringent requirements applicable to its services under regulations like MiCAR and DORA. This supports to minimize the institution's associated operational and compliance risks.
• Software Deployment Procedures: Requirements for the institution's "software deployment procedures" primarily relate to the secure integration and use of the external software (e.g., API management, configuration management), but not its development and maintenance – that part lies with the provider.
• Outsourcing Management: The primary regulatory task shifts to the management and control of the outsourcing arrangement. This particularly includes complying with requirements from MaRisk AT 9, EBA Outsourcing Guidelines, MiCAR and DORA provisions on ICT third-party risk management. Key elements are:
• Business Continuity Management: Involvement of the provider in the business continuity and recovery plan if a key/critical function is affected. Coordinated emergency plans must therefore be in place between the provider and the institution.

In Summary

When launching digital asset operations, financial institutions face a critical infrastructure decision: a resource-intensive in-house build, typically viable only at significant scale, or outsourcing. For many institutions, partnering with specialized providers like Trever can be strategically advantageous and more cost-efficient, particularly for initial phases or with limited asset volumes. This approach accelerates time-to-market, reduces complexity, leverages expert knowledge, and ensures adherence to outsourcing and information security standards (like ISO 27001:2022).

Looking for support with your digital asset strategy? Our experts guide you from early concept to a fully live product. Reach out: contact@trever.io

Disclaimer:

The information provided on this website and in blog posts is for general informational purposes only. It does not constitute legal or financial advice and should not be interpreted as such. In particular, this information does not constitute an offer or solicitation to buy, sell, or trade any assets or digital currencies.

Please note that Trever GmbH is neither licensed under the Austrian Securities Supervision Act (Wertpapieraufsichtsgesetz 2018, WAG 2018) or the German Commercial Securities Authorization Act (Gewerbliches Wertpapierberechtigungsgesetz, GWB), nor a licensed credit institution. Trever is not registered as a financial service provider and do not offer investment advice or similar services. The views expressed in the content are solely those of the author and are subject to change without notice.

Trever GmbH assumes no liability for any decisions made based on the information provided. The use of this content is at your own risk. We recommend that you seek advice from qualified professionals and conduct your own independent evaluation of the legal and financial implications before making any investment decisions.