Crypto Custody Provider Market by Type (Self-Custody, Third-Party Custody), Function (Asset Storage, Brokerage, Investment Agency), Use-Cases - Global Forecast 2024-2030

[182 Pages Report] The Crypto Custody Provider Market size was estimated at USD 1.77 billion in 2023 and expected to reach USD 2.99 billion in 2024, at a CAGR 79.86% to reach USD 108.37 billion by 2030.

The crypto custody providers market encompasses firms that offer secured storage and safety services for cryptocurrencies and digital assets. The crypto custody providers safeguard the cryptographic keys that grant access to the digital assets to prevent unauthorized use and reduce the risk of theft. The increasing crypto adoption is contributing to increasing need for secure custody services. The surge in institutional investors entering the cryptocurrency space requires robust custody services to handle large volumes of digital assets. The innovations in encryption and blockchain technology enhance the security and functionality of custody services. However, high-profile thefts and hacking incidents continue to pose a threat to market growth. The absence of uniform global regulations can hinder market expansion and consumer confidence. Moreover, integration with traditional financial systems to broaden market accessibility and appeal is generating significant growth potential in the market. The development of insurance products to provide additional security to the stored assets is anticipated to generate significant market growth.

In the Americas region, the United States and Canada represent a significant market for crypto custody solutions due to a sizable number of institutional investors becoming increasingly involved in the crypto space. The stringent regulatory frameworks and the presence of major players in the Americas region influence customer behavior towards prioritizing security and compliance with regulatory standards. Within the European Union, a uniform regulatory landscape is expected to stir consumer interest and trust further. European clients are typically attentive to compliance and are inclined to engage with custodians offering multi-jurisdictional regulatory assurance. The Middle East region has shown a burgeoning interest in crypto assets, with countries such as the UAE positioning themselves as crypto-friendly hubs. Africa's unique position as a largely untapped market with a rising fintech scene presents tremendous opportunities for market growth. In the APAC region, rising investments into crypto custody technology drives operational efficiency, security, and compliance with emerging regulatory guidelines. The growing interest in digital assets among consumers in the APAC region suggests a potential crypto custody solutions market.

The market dynamics represent an ever-changing landscape of the Crypto Custody Provider Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

• Market Drivers
  • Growing Utilization of Digital Asset Custody Services for Security and Storage of Cryptocurrency
  • Increasing Number of Cyberattacks on Cryptocurrency Exchanges
• Market Restraints
  • Lack of Awareness About the Benefits Associated with Crypto Custody
• Market Opportunities
  • Introduction of New Digital Asset Custody Platforms and Services
  • Partnerships Between Financial Institutes and Crypto Custody Service Providers
• Market Challenges
  • Regulatory Uncertainty and Potential Risks Associated With Crypto Custody

• Type: Growing need for self-custody options to achieve privacy and security

  Self-custody solutions refer to methods for individuals or institutions to store their own cryptographic keys, which are used to access and also control their digital assets. This type of custody is characterized by the user's direct and sole control over their cryptocurrency holdings. Third-party custody, on the other hand, involves entrusting cryptographic keys and digital assets to a specialized entity that offers security and asset management services. This type of custody is popular among institutional investors and users who prefer a hands-off approach to managing their digital assets. Custodial banks, traditionally known for safeguarding tangible assets and facilitating securities trading, have expanded their services to include digital assets. They provide institutional clients with a secure storage mechanism for cryptographic keys that control cryptocurrencies. Digital asset managers are specialized entities that focus exclusively on the management and safekeeping of digital assets, such as cryptocurrencies. Some cryptocurrency exchanges have incorporated custody solutions into their offerings, aimed at providing a one-stop-shop experience for traders and investors. Exchanges offer several benefits, such as the facilitation of quick access to trading and liquidity.

• Function: Expansion of brokerage to cater to diverse customer preferences

  Asset storage refers to the secure keeping of cryptocurrencies and digital assets. High-grade security practices include cold storage, multi-signature wallets, and encrypted databases to protect against unauthorized access and cyber threats. Users prioritize asset storage according to the volume, value, and type of asset they hold. Institutions with large holdings often prefer cold storage solutions due to their enhanced security features, while retail investors might be more interested in a balance between accessibility and safety. Brokerage services in the crypto space facilitate the buying and selling of digital assets for clients. These services can range from executing trades to providing liquidity and price discovery. Investors prefer brokerage services that offer a competitive fee structure, quick settlement times, and access to a wide variety of cryptocurrencies. High-frequency traders might also seek advanced tools such as algorithmic trading capabilities. Investment agencies offer advisory and asset management services to clients looking to build or maintain a crypto asset portfolio. Services include investment strategies, risk management, and yield-generating opportunities. Security token management entails the handling of security tokens that represent an investment in a real-world asset on the blockchain. Services include compliance adherence, issuance, and investor management.

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Crypto Custody Provider Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

The value chain of the Crypto Custody Provider Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of theCrypto Custody Provider Market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

The regulatory framework analysis for the Crypto Custody Provider Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Crypto Custody Provider Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Crypto Custody Provider Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

• Crypto Custody Firm Copper Launches Custodian-agnostic Settlement Network for Institutional Clients

  Copper, a crypto custody provider, has unveiled a settlement network designed to cater to the expanding demands of institutional participants in the digital asset space. The platform is custodian-neutral, emphasizing its ability to seamlessly integrate with various custody solutions. This ensures a heightened level of scalability and privacy, aiming to streamline the settlement process for over-the-counter (OTC) trades. [Published On: December 14, 2023]

• CoKeeps Gets SC's Nod, Becomes Malaysia's First Qualified DAC

  CoKeeps has officially become Malaysia's pioneering digital asset custodian (DAC), having been granted approval by the Securities Commission (SC) to provide custodial services for digital assets. This landmark approval underscores the SC's acknowledgment of the growing integration of digital assets within both individual and institutional portfolios, highlighting the necessity for regulated and secure solutions for asset protection. The endorsement by the SC marks a significant milestone in establishing a trustworthy third-party service for the secure management of digital assets, reinforcing the framework for a more resilient digital asset market. [Published On: November 10, 2023]

• German Banking Giant DZ Bank Launches Crypto Custody Platform

  Deutsche Bank, a global financial entity, has entered into a pivotal partnership with Taurus, a Swiss-based crypto firm, to inaugurate an advanced crypto custody solution tailored for the institutional market. This new offering aims to address the growing demand for a secure environment for the storage and management of digital assets, including cryptocurrencies and tokenized securities, thereby providing institutional clients with the assurance and reliability synonymous with Deutsche Bank's legacy in financial custodianship. [Published On: November 08, 2023]

The report delves into recent significant developments in the Crypto Custody Provider Market, highlighting leading vendors and their innovative profiles. These include Paxos Trust Company, LLC, CoKeeps Sdn Bhd, Riddle & Code GmbH, Coinbase Custody International, Ltd., Circle Internet Financial Limited, Matrixport Technologies Ltd., Gemini Trust Company, LLC, Copper Technologies, The Bank of New York Mellon Corporation, Deutsche Börse AG, Bakkt Holdings, Inc., Orbitos, Anchorage Digital, Tokensoft Inc., BCB Group, Fireblocks Inc., BitGo Inc., Fidelity Digital Asset Services, LLC., Venly NV, Bitcoin Suisse AG, Cobo Services, Ledger SAS, International Business Machines Corporation, New York Digital Investment Group LLC, Custonomy, NodeVenture by TMIA GmbH, and Tangany GmbH.

This research report categorizes the Crypto Custody Provider Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Type
  • Self-Custody
  • Third-Party Custody
    • Custodial Banks
    • Digital Asset Managers
    • Exchanges
• Function
  • Asset Storage
  • Brokerage
  • Investment Agency
  • Security Token Management
• Use-Cases
  • Collateralized Loans
  • Corporate Treasury
  • Crypto Staking
  • Investment Funds
  • Retail Offering

• Region
  • Americas
    • Argentina
    • Brazil
    • Canada
    • Mexico
    • United States
      • California
      • Florida
      • Illinois
      • New York
      • Ohio
      • Pennsylvania
      • Texas
  • Asia-Pacific
    • Australia
    • China
    • India
    • Indonesia
    • Japan
    • Malaysia
    • Philippines
    • Singapore
    • South Korea
    • Taiwan
    • Thailand
    • Vietnam
  • Europe, Middle East & Africa
    • Denmark
    • Egypt
    • Finland
    • France
    • Germany
    • Israel
    • Italy
    • Netherlands
    • Nigeria
    • Norway
    • Poland
    • Qatar
    • Russia
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Turkey
    • United Arab Emirates
    • United Kingdom

1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

1. What is the current market size and projected growth?
2. Which products, segments, applications, and regions offer promising investment opportunities?
3. What are the prevailing technology trends and regulatory frameworks?
4. What is the market share and positioning of the leading vendors?
5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?