Wallet governance is the set of policies, roles and technical rules by which an organisation controls its digital asset wallets: who may create them, who may propose and approve transactions, where assets may be sent and how keys are generated, stored and recovered. It applies the ordinary principles of payment control, such as segregation of duties and approval limits, to assets where a signed transaction cannot be reversed.
Typical elements are a wallet structure that separates a hot wallet for daily flows from cold storage for reserves; a policy engine requiring a set number of approvers according to amount and destination; lists of approved addresses and tokens; documented key ceremonies; and tamper-evident logs. Approval rules may be enforced through a multi-sig wallet or a threshold signature scheme. Regulators and auditors examine these arrangements when assessing institutional crypto custody, since many large losses have resulted from weak internal controls and not from broken cryptography.