# Segregated and omnibus wallets

A segregated wallet holds one client's assets under a dedicated on-chain address; an omnibus wallet pools several clients' assets under one address with ownership tracked off-chain in the custodian's books. The choice drives asset protection in insolvency, regulatory treatment, and operational cost.

## Choosing between segregation and omnibus

Segregation gives the cleanest legal position, on-chain proof per client, and simpler bankruptcy remoteness, at the price of more addresses to manage. Omnibus reduces fees and operational overhead but demands impeccable internal books and is restricted for certain client types in several regimes.

Taurus-PROTECT supports both models at scale, with address generation, labeling, and reporting built for millions of wallets, so banks can match structure to regulation per client segment.

FAQ:

- Do regulators require segregated wallets? Increasingly for retail client assets, yes, or at least clear books-and-records segregation with bankruptcy remoteness. Institutional arrangements vary. The custody platform must support both models so the legal decision is never constrained by technology.

Related: https://www.taurushq.com/protect/ https://www.taurushq.com/glossary/digital-asset-custody/

Learn more: https://www.taurushq.com/glossary/segregated-and-omnibus-wallets/