Custody services are vital in the crypto space. Nevertheless, it is still a fledgling market. Its importance has not yet garnered recognition; custody providers are essential for adopting cryptocurrencies and crucial within the institutional space. Furthermore, custody services are necessary to secure cryptocurrencies on respective exchanges safely. There have been numerous hacks and scams that have damaged the overall reputation of cryptocurrencies, and challenging these troubles has become an important issue to tackle. The digital asset space needs ways to safeguard these assets for private individuals, institutions, and enterprises. As a result, top custody providers are looking to build solutions for this problem.
Custodians’ global assets under management have grown to over $223 billion. The funding for custodians skyrocketed in 2021, surpassing $4.5 billion, and there are already signs of consolidation in the custodian market, with six providers being acquired in 2021 alone. Furthermore, it is estimated that 10% of all digital asset holdings are stored on the technology of the eight biggest custody providers in the industry.
The concept “not your keys, not your crypto” is one of the most important phrases for cryptocurrency holders and holds a lot of truth, especially given the increasing amount of hacks that centralized technology providers have experienced over the last years. Ledger is one of the biggest and best-known service providers for digital asset self-custody, making the company a unique provider for independent retail customers.
