- There are three main branches of crypto custody: exchange custody, self-custody, third-party custody
- Custody is important to the growth of the ecosystem as it can promote adoption and investment of crypto assets
- In Q2 2018, four of the largest custody banks held $114T worth of traditional assets under custody and administration
Traditional financial institutions do a tremendous amount of business as “custodians,” holding customers’ assets to protect them against theft or lost. In the second quarter of 2018, four of the largest custody banks held a whopping $114 trillion worth of assets under custody and administration. Custodial solutions are important for financial markets: Instead of firms spending time and resources to manage assets, they pay someone to take on that role — leaving more time for firms to operate in their areas of expertise.