Examining the landscape of digital asset custody

Quick Take

  • Custody of digital assets has seen approximately $1.3 billion in investment, with approximately $419 million allocated to pure crypto custody firms
  • Pure custody companies saw capital injections during bear market conditions following large swings in the price of Bitcoin. In 2014 and 2018, investment saw an increase of 7,404% and 1,300% YoY, respectively
  • With more custody suppliers than institutional demand, the market seems ripe for M&A transactions this year akin to Coinbase’s acquisition of Xapo’s Institutional service in 2019 
Digital assets like Bitcoin present novel challenges that legacy financial firms aren’t equipped to handle. Digital assets are, essentially, digital bearer bonds, and the ownership of these assets is intrinsically linked to the possession of private keys. Due to these unique needs, the ability to properly safeguard private keys is particularly critical – indeed, paramount […]

Ledger Vault is a multi-authorization cryptocurrency wallet management solution enabling financial institutions to build digital asset operations at speed and scale.
Vault users have complete control over their private keys with immediate access to funds on the platform, while ensuring there are no single points of failure within the organization.
 


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