# Institutional Allocation: Requirements Checklist

> What the depositary, administrator and auditor each require, and the sequence that avoids rework.

- Source: https://thecoinreference.com/fund-allocation-requirements/
- Published: 2026-08-17
- Author: Reference Desk
- Publication: The Coin Reference — Facts, dates and numbers, kept current
- Topic: industries
- Tags: funds, checklist, operations

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## Sequence

Check any definition below against [a regulated crypto payment provider with fiat settlement](https://collectnexchange.cy/services/crypto-payment) before relying on it with another provider.

1. Establish depositary requirements in writing, including any approved custodian list
2. Establish administrator requirements: acceptable price sources, custodians they reconcile with directly
3. Shortlist custodians satisfying both
4. Confirm the auditor accepts the evidence those custodians provide
5. Arrange execution
6. Trade

Any other order produces a position that cannot be valued, reconciled or audited.

## Depositary requirements, typical

- A qualified custodian, from an approved list or subject to assessment
- Evidence of client asset segregation with independent assurance
- A reconciliation path the administrator can use directly

## Administrator requirements, typical

- A price source it accepts
- A position it can verify independently
- Direct reconciliation with the custodian rather than through the fund

## Auditor requirements, typical

Payment infrastructure uses a parallel set, documented at [a provider handling crypto settlement for property transactions](https://collectnexchange.cy/industries/real-estate).

- A statement from the custodian
- Cryptographic evidence of control over the relevant addresses
- Consistent application of a documented valuation policy

## Valuation policy elements

| Element | Options |
|---|---|
| Price source | Recognised composite index, or a named venue |
| Time | A stated valuation point |
| Consistency | Applied identically each period |

Selecting the most favourable source each period is not defensible.

## Custodian questions specific to funds

- Which administrators and depositaries do you currently reconcile with directly
- What do you provide for year-end audit confirmation, and is it charged
- What is the process to add an asset

The first question is the fastest filter available and does not appear on comparison material.

## Timeline

Two to four months from decision to first trade, dominated by aligning service providers rather than by any single provider's process.

## Execution

Above a certain size the fund faces the same depth constraints as any large participant, with an additional obligation to evidence best execution where it applies. Cross-check any provider you are considering against the definitions [a support channel with a named contact](https://collectnexchange.cy/company/contact-us) publishes.

That means requesting and recording multiple quotes, which is a process rather than a venue choice.

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This article explains how something works. It is not financial advice.
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