PUBLISHER: Orion Market Research | PRODUCT CODE: 1758727
PUBLISHER: Orion Market Research | PRODUCT CODE: 1758727
Crypto Asset Management Market Size, Share & Trends Analysis Report by Solution (Custodian Solution and Wallet Management), by Deployment Mode (Cloud and On-Premise), by Application (Mobile and Web-based), by End-User (Individual and Enterprise), Forecast Period (2025-2035)
Industry Overview
Crypto asset management market was valued at $719.8 million in 2024 and is projected to reach $6,544.5 million by 2035, growing at a CAGR of 22.3% from 2025 to 2035. Pivotal factors such as the growing investment from institutional & individual investors in crypto assets, advancement in supportive crypto technology, including blockchain infrastructure, smart contracts, and expanding the utility of crypto assets through tokenization of real-world assets are projected to drive market growth. The regulatory frameworks across different geographies also lead to growth in the market. For instance, Japan continuously updated its laws for cryptocurrency to ensure investor protection, transparency, and security. In April 2017, the Payment Services Act (PSA) recognized Bitcoin and other virtual assets as legitimate property. Since then, the country has been at the forefront of cryptocurrency regulation, implementing several updates and amendments to its existing regulatory framework.
Market Dynamics
Institutional Solutions are Gaining Momentum
Crypto asset management solution providers are increasingly focusing on delivering institutional services and solutions, as the institutional market holds significant potential for growth due to higher investment volumes. For instance, in February 2024, Kraken launched Kraken Institutional, an umbrella brand for its suite of products and services tailored to institutional clients, including asset managers, hedge funds, and high-net-worth individuals. The platform aims to serve as a one-stop shop, offering innovative and customized solutions designed to meet the unique needs of institutional investors. Similarly, companies like Banque Delubac & Cie provide institutional clients with expertise and innovative solutions that enhance the value of their operations. These offerings reflect the broader industry shift toward professionalized asset management infrastructure to attract and retain institutional capital.
AI-Driven Innovations in Crypto Asset Management
Artificial Intelligence (AI) is a player in the cryptocurrency trading space to enhance the efficiency and effectiveness of trading operations. Algorithmic trading represents a prominent domain in which AI delivers significant advancements. Algorithmic trading involves the use of complex AI systems to make trading decisions faster. This is particularly useful in the crypto market, where prices are extremely volatile. AI trading is a method of trading that aims to use custom-built programs that run bots to analyze data and conduct transactions. Cryptocurrency trading bots are software programs that use algorithms to execute trading strategies automatically on behalf of participants in the cryptocurrency markets. For instance, Bitsgap launched an AI Assistant for portfolio management, enabling traders to oversee entire portfolios across exchanges such as Binance, OKX, and KuCoin, enhancing crypto-to-crypto trading and profitability.
Market Segmentation
Custodian Solution Segment to Lead the Market with the Largest Share
Institutional investors are looking to their banks for safe custody and management of this asset class, emphasizing the need for a secure, technology-driven crypto custody solution. Custodian banks explore approaches that ensure safe custody of cryptocurrency-based assets while allowing efficient and secure management. Custodians can offer a wide range of financial services for cryptocurrency-based assets, in turn creating exponential value for customers. Financial institutions providing custody services for traditional financial assets are uniquely positioned to offer additional crypto asset-specific services. Introducing such services helps to gain a competitive edge over other non-custody service providers, such as retail banks or technology services providers.
Crypto assets can be held in the custodian's name in public ledgers (blockchain), allowing the custodian to operate these assets with proper permission from the investor. Custodians can also provide analytics services with insights into the demand and transaction volumes of crypto assets. Research teams can use these analytics for portfolio advisory. Custodians can source real-time pricing information of crypto assets to update the portfolio value simultaneously.
Cloud Solution: A Key Segment in Market Growth
Cloud-connected asset management solutions offer a centralized hub for data. Cloud solutions can track asset performance, maintenance needs, and operational workflow. Cloud storage eliminates data silos and ensures the access to the latest information. For instance, IBM Cloud Hyper Protect Crypto Services is a key management and encryption solution that gives full control over encryption keys for data protection. The integrated Unified Key Orchestrator acts as a secure key repository for distributing and orchestrating keys across multiple clouds, enabling quick recovery from key loss or disasters. It also offers FIPS 140-2 Level 4 certified security, seamless multi-cloud key management with built-in backups and high availability, and support for BYOK across platforms such as Azure, AWS, and Google Cloud. It ensures robust data protection with pervasive encryption and full control through the Keep Your Own Key (KYOK) model.
Similarly, SoftLedger's full-featured crypto asset management software and robust API enable automating client financial management. This includes self-service customization, giving the ability to report on customer holdings separate from internal holdings, by asset, directly on the balance sheet, and others.
The global crypto asset management market is further divided by geography, including North America (the US and Canada), Asia-Pacific (India, China, Japan, South Korea, Australia and New Zealand, ASEAN Countries, and the Rest of Asia-Pacific), Europe (the UK, Germany, France, Italy, Spain, Russia, and the Rest of Europe), and the Rest of the World (the Middle East & Africa, and Latin America).
Growing regulatory approach to create a unified digital financial ecosystem in Europe
Europe is emerging as a key region in the market, driven by its regulatory approach and efforts to create a digital financial ecosystem. In June 2023, the European Union (EU) formed the Markets in Crypto-Assets (MiCA) regulation. MiCA regulates crypto-asset issuance and services not covered by pre-existing regulations on financial instruments and financial products by creating a harmonized European regulatory framework. It specifically introduces a pan-European licensing and supervisory regime for issuers of crypto-assets, crypto platforms, and crypto-asset service providers (CASPs) across a broad range of crypto-assets, including exchange tokens (such as Bitcoin), utility tokens, asset-referenced tokens (ARTs), and electronic-money tokens (EMTs).
North America Region Dominates the Market with Major Share
North America is expected to hold a considerable share of the global crypto asset management market.US leads the market owing to the dominance in adopting bitcoin, Ethereum, stablecoins, and others. According to the US Department of the Treasury, digital assets have experienced rapid growth in recent years. Bitcoin is primarily used as a store of value within the decentralized finance (DeFi) ecosystem. Additionally, there are ongoing efforts to leverage blockchain and distributed ledger technology (DLT) to create new applications and enhance traditional financial market infrastructure, particularly in areas such as clearing and settlement.
The major companies operating in the global crypto asset management market include Binance, Coinbase, Gemini Trust Co., LLC, Paxos Trust Company, LLC, Cipher Technologies Management LP, Ripple Labs Inc., and Bitgo Inc., among others. Market players are leveraging partnerships, collaborations, mergers and acquisition strategies for business expansion and innovative product development to maintain their market positioning.
Recent Developments