PUBLISHER: The Business Research Company | PRODUCT CODE: 1760086
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760086
Digital asset custody refers to the secure storage and management of digital assets on behalf of individuals or institutions. These custody solutions protect assets from theft, loss, or unauthorized access through advanced security methods such as encryption, multi-signature wallets, and cold storage. Digital asset custody services are crucial for institutional investors, ensuring compliance, risk management, and regulatory oversight.
The two main types of digital asset custody are hot wallet custody and cold wallet custody. Hot wallet custody allows quick access to digital assets for frequent trading but presents higher cyber risks due to its constant internet connection. Therefore, it requires robust security measures, such as two-factor authentication (2FA) and regular updates. Hot wallet custody services support various asset types, including cryptocurrencies, digital securities, tokenized assets, and non-fungible tokens (NFTs). They also offer a range of services, including custody, trading, reporting and compliance, and risk and security management. These services can be deployed on-premises or in the cloud and are used by various end-users, such as institutional investors, hedge funds, asset managers, banks, family offices, exchanges, and trading platforms.
The digital asset custody market research report is one of a series of new reports from The Business Research Company that provides digital asset custody market statistics, including the digital asset custody industry global market size, regional shares, competitors with the digital asset custody market share, detailed digital asset custody market segments, market trends, and opportunities, and any further data you may need to thrive in the digital asset custody industry. This digital asset custody market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The digital asset custody market size has grown rapidly in recent years. It will grow from $600.28 billion in 2024 to $709.05 billion in 2025 at a compound annual growth rate (CAGR) of 18.1%. The growth during the historic period can be attributed to the increasing acceptance of digital assets, growing concerns over digital asset security, a rise in institutional participation in cryptocurrency markets, a heightened regulatory focus on asset protection, and an increasing demand for secure key management solutions.
The digital asset custody market size is expected to see rapid growth in the next few years. It will grow to $1,366.94 billion in 2029 at a compound annual growth rate (CAGR) of 17.8%. The projected growth in the forecast period can be attributed to the increasing institutional demand for compliant custody solutions, a rise in cyber threats driving the need for secure storage, the integration of digital assets into traditional finance, advancements in multiparty computation (MPC) technology, and the growth of tokenized financial instruments. Key trends expected during this period include improvements in MPC-based security, the development of advanced wallet-as-a-service models, the creation of regulatory-compliant platforms, innovations in key management solutions, and advancements in cross-chain custody systems.
The growth of wealth management activities is anticipated to accelerate the expansion of the digital asset custody market in the coming years. Wealth management involves providing personalized financial services, including investment management, estate planning, and tax strategies, to help individuals protect and grow their wealth. The increase in wealth management activities is driven by a rising number of high-net-worth individuals seeking expert guidance to manage and grow their assets. Digital asset custody plays a pivotal role in wealth management by offering secure storage, compliance, and convenient access to digital assets, which enhances investor confidence, supports portfolio diversification, and enables the integration of digital assets into conventional financial services. For instance, in August 2024, the Investment Association, a UK-based trade body for investment managers, reported that the UK investment management industry saw a 3% increase in assets under management, growing from £8.8 trillion ($9.95 trillion) in 2022 to £9.1 trillion ($10.29 trillion). As a result, the rise in wealth management activities is fueling the growth of the digital asset custody market.
Key players in the digital asset custody market are focusing on forming strategic partnerships to enhance asset security and reduce the risks associated with private key exposure. Strategic partnerships are collaborative agreements between organizations aimed at combining strengths to achieve shared objectives. These alliances foster innovation, expand market reach, and facilitate mutual growth without requiring formal mergers. For example, in September 2023, Cobo, a Singapore-based digital asset custody technology provider, partnered with Antalpha, a Singapore-based platform offering digital asset technology services for institutional investors. This collaboration integrated Cobo's innovative B2B2C MPC Wallet-as-a-Service (WaaS) solution into Antalpha Prime. The integration aims to improve security and transparency for end investors by allowing them to participate directly in transaction signing. The solution employs threshold signature schemes (TSS) and advanced private key sharding, ensuring that transactions cannot be signed without the end user's key share, thereby enhancing asset security.
In December 2024, Bergos AG, an independent private bank in Switzerland specializing in wealth management, partnered with Sygnum Bank to offer clients regulated trading and secure custody of cryptocurrencies. Through this partnership, Bergos' clients now have seamless access to a broader range of digital assets within their established banking environment. Sygnum Bank, based in Switzerland, is a provider of a multi-custody platform for digital assets.
Major players in the digital asset custody market are The Bank of New York Mellon Corporation, Standard Chartered PLC, State Street Corporation, Coinbase Global Inc., Bakkt Holdings Inc., Gemini Trust Company LLC, Fireblocks Inc., Matrixport Technologies Limited, Ledger Enterprise SAS, Sygnum Bank, Clearstream Banking SA, New York Digital Investment Group LLC, Bitcoin Suisse AG, Palisade, Etana Custody Inc., Anchorage Digital Bank NA, Aegis Custody Inc., Fidelity Digital Asset Services LLC, Zodia Custody Limited, Tangany GmbH, Liminal Custody Solutions Pvt Ltd, Komainu.
North America was the largest region in the digital asset custody market in 2024. The regions covered in digital asset custody report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the digital asset custody market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The digital asset custody market includes revenues earned by entities through secure storage of digital assets, regulatory compliance, transaction management, and cybersecurity solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Digital Asset Custody Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on digital asset custody market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for digital asset custody ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The digital asset custody market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.