At Two Ocean Trust, safeguarding client assets is the foundation of everything we do. As a trust company, we provide a unique custody solution that prioritizes security, transparency, and privacy. In contrast to banks and brokerage firms, our structure and approach are built to ensure that client assets are held, not used. Below, we’ll explore how our custody practices, insurance requirements, and bankruptcy-remote accounts set Two Ocean Trust apart—and why these differences matter to our clients.
Custody: Holding Assets, Not Owning Them
As an independent trust company, Two Ocean Trust is legally obligated to hold client assets for their benefit. We cannot own these assets, nor can we loan them out. This fundamental distinction sets us apart from banks and brokerage firms.
Banks, for instance, take legal possession of client deposits in their corporate name to loan money, a cornerstone of their business model. Similarly, brokerage firms often take ownership of client securities, enabling them to lend these securities to other entities. At Two Ocean Trust, this is not possible. By the nature of our trust charter, we are prohibited from taking possession of client assets or making loans of any kind. This ensures that your wealth remains exactly where it belongs — in your name.
Insurance: A Different Standard of Security
Banks and brokerage firms rely on FDIC and SIPC insurance because they loan client assets, creating the risk of borrower defaults. If a bank’s borrowers fail to repay loans, or if depositors demand their funds faster than the bank can provide them, the institution can fail. This is why federal regulations require insurance to protect depositors and investors.
Two Ocean Trust operates on an entirely different model. Because we are legally prohibited from loaning our clients’ assets, there is no need for FDIC or SIPC insurance. Instead, the security of your wealth lies in the structural safeguards of our trust company. Your assets are never at risk of being used for lending activities, providing a level of inherent protection that insured accounts cannot match.
Wyoming’s Bankruptcy-Remote Accounts: Leading the Way in Asset Protection
Wyoming continues to lead in innovative trust legislation, providing unmatched protections for client assets. In response to recent large-scale cryptocurrency bankruptcies, the state enacted a groundbreaking law to safeguard client assets held in “covered accounts.”
Clients of Two Ocean Trust benefit from these protections because our agreements explicitly designate assets as being held in covered accounts. This ensures that client assets are never treated as our assets or liabilities in the case of receivership or bankruptcy. By offering clear statutory language and legal certainty, Wyoming has become the safest jurisdiction for managing both traditional and digital assets.
Conclusion: Why It Matters
At Two Ocean Trust, your assets are always held securely and exclusively for your benefit. Unlike banks and brokerage firms, we never loan client assets for any purpose, ensuring they are available and deliverable at a moment’s notice. Our custody structure, combined with Wyoming’s forward-thinking laws, provides clients with unparalleled security and peace of mind in managing their wealth.
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About Us
Two Ocean Trust partners with families to manage multi-generational wealth. We deliver customized investment and trust solutions to ultra-high net worth individuals, family offices, and foundations. Based in Jackson Hole, we are uniquely positioned to provide access to Wyoming’s tax advantages, modern trust laws, and enhanced privacy protections through collaborative relationships focused on the long-term goals of our clients.
