- With a flood of capital coming into the crypto asset class in 2017, there was a rush to provide storage solutions for many different kinds of customers
- Large exchanges have entered the space as well as new startups trying to capture a part of the value chain
- Incumbents seem to have a strong advantage given on-going margin compression
In 2017, cryptocurrencies saw a spark of institutional interest and with it, a number of new categories of startups emerged:
- Asset custody: With crypto-fund managers offering an estimated $10b+ in AUM and potential incoming institutional capital, competition to be the premier asset custody provider intensified as each entrant rushed to slash fees, increase asset coverage, get insurance under-written, and demonstrate regulatory compliance.