# The Custody Concentration Problem in RWA *Physics-based topology analysis of 171 entities across the RWA ecosystem* By [Eigenstate Research](https://paragraph.com/@eigenstate) · 2026-02-20 --- We mapped 171 entities and 239 connections across the tokenized real world asset ecosystem — protocols, chains, custodians, regulators, corporate structures, capital flows. One pattern stands out: custody concentration. A single custodian network holds safekeeping relationships with 4 separate protocols in our registry. That's the highest custody concentration we track. Each new dependency on this entity makes the overall system more fragile, not stronger — the rate of risk accumulation has exceeded the rate of value creation. This entity pulls value inward rather than distributing it across the network. It centralizes rather than settles. **Connection map:** 4 custody relationships (asset safekeeping — protocols trust this entity to hold their underlying assets), 4 information channels, 1 ownership link, 1 governance connection. It operates almost entirely within traditional finance infrastructure. This matters because the protocols depending on it are crypto-native, but their custody sits in TradFi. T**his matters for governance** When a single node holds custody for multiple protocols AND connects to governance and information channels, the risk isn't just about that entity failing. It's about correlated failure — if the custodian has issues, multiple protocols are affected simultaneously. **Verify** All of this is computed from a topology of 171 entities with 239 mapped connections. 14 on-chain attestations on Base, $6.2B total attested value, 7 verified issuers. The attestation data is readable directly from the registry contract on Base. This analysis is deterministic — the same connection structure produces the same results. No subjective ratings, no opinions. **Live registry:** [https://geniusflow-rwa.vercel.app](https://geniusflow-rwa.vercel.app) **Contract on Base:** `0x29c97E958313181c0463898894D7Cb93e9cF70db` _Eigenstate Research — physics-based verification for real world assets._ * * * --- *Originally published on [Eigenstate Research](https://paragraph.com/@eigenstate/the-custody-concentration-problem-in-rwa)*