Use the comparison tool below to compare the top Crypto Custodians on the market. You can filter results by user reviews, pricing, features, platform, region, support options, integrations, and more.
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Venly is a blockchain technology provider that creates tools and products to help companies benefit from blockchain technology. We offer a whole technology stack to bring platforms, apps, and brands into Web3. We provide marketplaces, wallets, and NFT solutions to assist businesses in smoothly integrating web3 technology and onboarding customers. Our solutions use a Web2 interface that developers and users are already familiar with to make blockchain easy to use. Venly enables the adoption of blockchain by offering reliable and user-friendly software solutions. We are making blockchain accessible for everyone. Venly's products and services include: WALLET SOLUTIONS → Instant Web3 Wallets for Your Users NFT TOOLS → Your Complete NFT Toolkit MARKETPLACE SOLUTIONS → NFT Marketplace Built for the Mainstream SHOPIFY NFT APP → Sell NFTs in Your Shopify Store WEB3 GAMING TOOLKIT → Make Your Game Web3 Ready
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BitGo is the first digital asset company that has been focused exclusively on serving institutional clients since 2013. BitGo provides institutional investors with custody, staking, liquidity and security solutions. Active in both centralized and decentralized finance, BitGo offers market leading trading, lending, and borrowing services through its prime brokerage services and acts as the custodian for WBTC, the leading global stablecoin for Bitcoin. In 2020, BitGo launched BitGo Prime, Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. Most recently, BitGo launched institutional-grade DeFi, NFT and web3 services. BitGo processes approximately 20% of all global Bitcoin transactions, and supports over 700 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries.
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Cobo Custody
Cobo
$0 1 RatingCobo Custody is compliant, military-grade institutional crypto custody that balances security and efficiency. With industry leading security and technology such as 3-tier private key storage architecture, HSM signing, multi-signature access, key sharding, and global key distribution, it is the most secure custody solution in the market. Its specialized set of risk management configuration such as optimized risk control framework, on-chain monitoring expertise, and custom access and workflows, it supports institutional security and team collaboration needs and eliminates single points of failure and operational risk errors. Cobo Custody protects your crypto, whilst giving you efficient access when you need it. Cobo keeps your digital assets secure through two customisable custodial solutions: HSM and MPC. -
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Bakkt serves as a comprehensive digital asset platform, allowing both individuals and enterprises to engage in the buying, selling, and management of various digital assets, including cryptocurrencies and loyalty rewards. Established in 2018 by the Intercontinental Exchange (ICE), Bakkt initially concentrated on providing secure storage and trading solutions for institutional cryptocurrency investors. As it evolved, the platform broadened its focus to enhance accessibility to digital assets for everyone, effectively connecting the realms of digital currencies with conventional financial systems. One key feature of Bakkt is its mobile application, which empowers users to oversee their digital assets, transform points and rewards into cash, and use cryptocurrencies for daily transactions. Additionally, Bakkt supports businesses by offering tools to incorporate digital asset functionalities into their offerings, fostering deeper customer engagement and loyalty initiatives. The platform’s mission is to streamline the digital asset landscape and promote widespread adoption through its secure and compliant solutions, thereby making digital finance more approachable for all. By continually adapting to the needs of the market, Bakkt positions itself as a leader in the evolving digital economy.
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The status quo of traditional banks is being challenged as blockchain technology and cryptocurrency transform the world. It can be difficult and overwhelming to manage and secure your crypto assets. Orbitos is a user-friendly platform that allows for easy storage and management of crypto assets. Our cutting-edge technology will help you improve your financial efficiency, and increase your profit margins. Secure cryptocurrency storage Simple account recovery Transactions that are efficient and cost-effective Liquidity of assets improved
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Gemini offers a sleek, secure, and straightforward platform for managing your cryptocurrency investments. Engaging in the buying, selling, and storing of crypto has never been more effortless. Whether you are a seasoned trader or a newcomer, Gemini provides all the necessary resources to manage your crypto activities effectively. As a licensed trust company based in New York, Gemini is subject to regular bank examinations and rigorous cybersecurity audits by the New York Department of Financial Services. Furthermore, Gemini is proud to be SOC 1 Type 1 and SOC 2 Type 2 compliant, marking its status as the first cryptocurrency exchange and custodian to successfully complete these certifications. To enhance account security, users can protect their accounts with a hardware security key utilizing WebAuthn technology. Additionally, customer peace of mind is assured with insurance coverage for all crypto assets stored online in our exchange wallet, complemented by industry-leading cold storage solutions backed by top insurance providers. With these features combined, Gemini aims to create a safe and efficient environment for all users in the ever-evolving world of cryptocurrency.
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Bitcoin Suisse
Bitcoin Suisse
1 RatingExperience secure cold storage for cryptocurrency assets with the Bitcoin Suisse Vault, which has undergone thorough audits by PricewaterhouseCoopers, Grant Thornton, and Zühlke, along with penetration testing by Compass Security. The vault utilizes a reliable multi-signing process to ensure optimal asset governance and supports a wide array of cryptocurrencies including BTC, ETH, BCH, BSV, XRP, XTZ, and various ERC-20/223 tokens. Clients can tailor their setup and account configurations to meet specific needs, making Bitcoin Suisse an ideal choice for institutional-grade custody solutions. Furthermore, the Bitcoin Suisse Vault maintains assets in cold storage across individual blockchain addresses, allowing for easy 24/7 access by authorized individuals without the need for hardware, facilitating trading, transfers, and other operations. The vault continuously expands its offerings by regularly incorporating additional crypto assets, ensuring that clients have access to an ever-growing range of digital currencies. This commitment to security and flexibility positions Bitcoin Suisse as a leading provider in the cryptocurrency custody space. -
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Acquiring cryptocurrency has reached unprecedented ease! You can now trade from your own home, benefitting from the security and rapid transactions that only Bit2Me can provide. A superior alternative to traditional banking has arrived. Effortlessly handle both cryptocurrencies and fiat money! You can receive, store, send, buy, sell, and utilize various cryptocurrencies like Bitcoin or Ethereum alongside your traditional currency, all in a swift and secure manner. Bank 3.0? This surpasses that! The Bit2Me freedom system combines cryptocurrencies with traditional currency, a debit Mastercard crypto card, a shared IBAN, peer-to-peer payments, and seamless exchanges. Sign up today! Whether you're an individual, a company, a developer, an institution, or an investor, there's a place for you here. Fund your account using cryptocurrency, bank transfer, card, or cash with ease. Build your investment portfolio with just a click. You can buy, sell, and trade in a heartbeat! Engage in buying, selling, receiving, sending, and exchanging a variety of cryptocurrencies anytime you wish. The platform is readily accessible on both Android and iOS devices, enhancing your trading experience.
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Vaultody
Vaultody
$299Vaultody is a leading digital security platform, specializing in advanced asset protection and management for businesses and financial institutions. Using Secure Multiparty Computation (MPC) and robust encryption, Vaultody secures digital assets like cryptocurrencies, private keys, certificates, and sensitive information against unauthorized access and cyber threats. Designed for seamless integration in enterprise environments, Vaultody’s comprehensive key management system ensures secure transactions and reliable asset control from anywhere in the world. With global accessibility, multi-signature authentication, and powerful automation, Vaultody delivers unmatched digital security, making it the preferred solution for efficient and secure digital asset management. -
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NodeVenture
TMIA GmbH
9 EUR/month/ user TMIA GmbH developed NodeVenture to combine the security of offline wallets and the user-friendliness online wallets within a regulated environment. NodeVenture’s secure wallet system allows users to store digital assets in an offline area that is completely disconnected. This is called cold storage. Our patented data transfer allows users to access their assets from anywhere using the NodeVenture WebApp. Data exchanges are fully automatic, eliminating the risk of human error or external threats. Our technology does NOT use a network protocol to exchange data and allows uninterrupted interaction with the private key of the user. As an added layer of security, the wallet is surrounded with an air gap. NodeVenture's wallet infrastructure is blockchain agnostic. BTC, ETH(ERC20), and LTC are already integrated. NodeVenture can be offered via API and white label. Our company has received ISAE 3000 Type 1 & 2 attestation and is ISO 27001 certified. -
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Casa
Casa
$10 per monthDiscover the most secure method for storing your Bitcoin. Experience an intelligent approach to investing in the most robust currency available globally. With Casa's reliable security measures, your Bitcoin remains protected for both you and your loved ones. You maintain full authority over your assets, as Casa equips you with the necessary tools to manage your private keys effectively. Rely on Casa for exceptional support at any time, while we prioritize the privacy of your personal information. It's the most straightforward and secure way to embark on your multisig journey. Elevate your hardware wallet's capabilities with our innovative features. Expect unparalleled service and top-notch security in the realm of Bitcoin. Our Dedicated Client Advisors are committed to assisting you, your family, or your team. Created by the esteemed Bitcoin and privacy specialist Jameson Lopp, Casa's innovative approach to multi-location security eliminates vulnerabilities and safeguards you from theft, unforeseen incidents, and disasters. With Casa Covenant, rest assured that your loved ones will receive their Bitcoin securely when the moment arises, ensuring peace of mind for you and your family. This comprehensive strategy not only protects your investments but also simplifies the process of asset transfer to future generations. -
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CheckSig
CheckSig
0CheckSig's unique infrastructure offers a fully managed, integrated custody solution and best execution solution to financial services, institutional investors, and HNWI. CheckSig is fully insured and regulated. Since 2020, CheckSig provides Proof of Reserves and attestations for SOC1 and OOC2. Its multi-signature, multi-level protocol is part the Crypto Open Patent Alliance. -
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Atato
Atato
$50Atato offers an inventive solution for safeguarding digital assets, underpinned by multi-party computation tech. Tailored for small to midsize web3 ventures, Atato empowers secure treasury management on Bitcoin and EVM-based chains via an intuitive mobile and web dashboard. Its easy setup supports 1,800+ cryptocurrencies, enabling custody, management, and dApp interaction through WalletConnect. Compliant in Asia and Europe with ISO27001 certification, Atato facilitates rule-based treasury control aligned with company policies. Remarkably, it's the sole fixed-price custody solution without AUM fees. Our service encompasses mobile apps, APIs, support, and disaster recovery. Compliant and licensed in ASIA & EU. -
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Revault
Wizardsardine
FreeRevault provides a comprehensive custody solution utilizing Bitcoin smart contracts. It features fund delegation governed by policies, the ability to manually veto outgoing transactions, and mechanisms for physical threat mitigation, all without requiring a third party. Constructed on the Bitcoin protocol and bolstered by its network security, Revault stands as a Bitcoin-native solution. Covering everything from key generation to network communications, as well as wallet management and replicated watchtowers, Revault operates as a standalone complete solution. Organizations can self-host Revault, ensuring they retain full control over their custody and spending policies. For those institutions not yet ready to implement an in-house system, Revault also accommodates third-party custodians effectively. Emphasizing transparency, Revault is fully auditable and open-source, which means its protocol and software are not reliant on any single entity for ongoing maintenance and enhancement. This independence positions Revault as a sustainable option for the future of digital asset management. Furthermore, the platform's commitment to security and transparency fosters trust among users, ensuring they can confidently manage their assets. -
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Xapo Bank
Xapo Bank
Xapo Bank stands out as an innovative financial entity that combines conventional banking services with the revolutionary capabilities of Bitcoin. Located in Gibraltar and operating with full licensing, Xapo Bank caters to progressive individuals who value financial independence and cutting-edge solutions. As one of the trailblazers in fully integrating Bitcoin into banking services, it allows its members to securely save, transact, and enhance their wealth in both traditional currencies and Bitcoin. Users benefit from a streamlined experience, featuring tools that facilitate Bitcoin usage for daily purchases as well as for long-term financial growth. Prioritizing strong security measures, personalized banking options, and effortless access to the Bitcoin ecosystem, Xapo Bank enables clients to engage in the global digital marketplace while relying on the trustworthiness of a licensed banking institution. Its dedication to merging conventional finance with the cryptocurrency landscape solidifies Xapo Bank's position as a frontrunner in the transformation of contemporary banking practices, setting a benchmark for future financial institutions. -
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Matrixport
Matrixport
Matrixport simplifies access to cryptocurrency financial products, making it easy to earn interest. The platform provides an effortless way to achieve up to 30% annualized interest rates, with options available in multiple currencies and various tenors. Users can enjoy up to 6% APY, the flexibility to withdraw funds at their convenience, and the benefit of hourly compounding. Currently, the majority of investments are allocated to Matrixport's proprietary offerings, such as Collateralized Loans, Zero-interest Loans, Spot Leverage Products, and Credit Funding, among others. Security protocols vary by asset class, ensuring tailored protection. Additionally, Matrixport enables spot trading without any commission charges, allowing users to borrow USDT or USDC for crypto purchases and express a bullish outlook on assets like BTC, ETH, BCH, and LTC. Users can also borrow BTC, ETH, or BCH to sell and act on their bearish sentiments regarding these cryptocurrencies. The loans come with instant approval, providing immediate access to funds for spending. With competitive interest rates, users can significantly reduce their financing costs. The price index is derived from reputable exchanges and trustworthy platforms, guaranteeing both fairness and transparency in transactions. Furthermore, Matrixport continuously seeks to innovate and expand its offerings, ensuring that users have the best tools available for their cryptocurrency investments. -
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Independent Reserve
Independent Reserve
0.02% FeeData centers that are encrypted and geographically dispersed ensure the utmost protection for your information. High-end underground vaults are employed to safeguard both your data and cryptocurrency assets. You can utilize sophisticated order types like stop loss, take profit, and limit orders to optimize your trading strategies. Engage in trading the most liquid digital assets available globally, and conveniently store them all in your personal wallet. Premium account holders benefit from insurance against theft and loss, bolstered by Independent Reserve's robust physical security protocols. The KPMG tax estimator can assist you in determining your potential tax liabilities with ease. For those looking to make substantial over-the-counter (OTC) trades, our VIP service desk is at your disposal. Your trading account serves as a crucial gateway to the Independent Reserve cryptocurrency markets and your digital coins. Given the significance of this access point, extensive security measures are imperative, and Independent Reserve takes pride in its exemplary record of account security, offering a diverse array of protective features for users. With such comprehensive security and support, you can trade with confidence. -
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Tangany
Tangany
Tangany operates as a white-label custody provider based in Germany, offering a robust solution that serves as a solid foundation for your business venture while ensuring top-tier flexibility. Each wallet utilizes cutting-edge HSM technology, compliant with the FIPS140-2 standard, recognized by both US government and banking sectors. Furthermore, Tangany undergoes regular external audits and adheres to ISO 27001 standards, demonstrating a commitment to security and quality. The company is overseen by the German Federal Financial Supervisory Authority (BaFin), ensuring compliance with stringent regulations. By selecting your industry, you can discover how the Tangany Custody Suite can cater to your specific needs. We accommodate a diverse range of digital assets, including cryptocurrencies, security tokens, utility tokens, and NFT custody solutions. Tangany's white-label offering allows banks, asset managers, and financial IT service providers to securely and efficiently manage digital assets. As the leader in tokenized asset custody, Tangany has established integrations with all major tokenization providers across Europe. Our partners utilize our services to innovate and develop a variety of products, such as crypto trading platforms, lending services, staking options, and much more, enhancing the overall digital asset landscape. This comprehensive approach positions Tangany as a pivotal player in the evolving world of digital finance. -
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CYBAVO
CYBAVO
CYBAVO is a digital security company that protects digital assets. It was founded by pioneers and experts in the security and cryptocurrency industries. They have more than 20 years of experience in cybersecurity at the highest levels. CYBAVO's mission it to provide the best technologically advanced security for digital asset custodians. Our expertise in cybersecurity, decentralized technology, and blockchain technology allows us to empower blockchain companies by providing enterprise-ready crypto wallet management services that are secured with the most advanced technology. Our robust cryptographic scheme protects private keys and minimizes key loss. We use a shared responsibility model to minimize the risk. To theoretically gain access, an attacker must compromise at least three entities. Our solution is built on security. Our platform is secure from the operating system to the programming language level up to the strong enforcement of our transaction policies. -
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itBit
Paxos
itBit Digital Asset Exchange provides a secure and equitable trading platform, regulated by the New York Department of Financial Services ("DFS"), and employs state-of-the-art blockchain monitoring technologies to combat market manipulation. By utilizing itBit’s extensive global network, clients from over 100 countries can tap into substantial fiat-to-crypto liquidity pools for various pairs including USD:BTC, USD:ETH, USD:BCH, USD:LTC, USD:PAXG, among others. The exchange prioritizes security through multiple protective layers and ensures that all crypto assets are stored in cold storage, guaranteeing the safety of both the exchange and your investments. Furthermore, liquidity providers benefit from maker rebates, while the platform maintains a flat fee structure for transactions, with no fees for cryptocurrency withdrawals. Paxos distinguishes itself by being the only crypto-to-fiat exchange that offers maker rebates for every trade executed. This competitive fee arrangement makes itBit one of the most attractive options in the marketplace for traders seeking value. -
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Unbound Crypto Asset Security Platform
Unbound Security
Unbound's Crypto Asset Security Platform (CASP) stands out as the sole FIPS 140 L2 certified Multi-Party Computation (MPC) security platform available for digital assets. This innovative platform allows users to establish risk-based approval policies that comply with local regulations and seamlessly integrate Hardware Security Modules (HSMs) and offline signers into a unified MPC environment. By utilizing this FIPS 140 L2 certified software solution, organizations can eliminate the vulnerabilities associated with public-key cryptography, enabling a secure, distributed method for signing transactions while effectively managing their digital assets. With Unbound CASP, institutional investors gain the ability to uphold regulatory compliance without sacrificing security or productivity of their assets. This all-encompassing system not only protects digital assets in both ‘cold’ and ‘hot’ vaults but also employs MPC-driven workflows and approval policies to facilitate secure transfers between these vault types. Furthermore, CASP accommodates any structuring of approval policies and supports an unlimited number of cryptographically validated signers, ensuring that organizations can tailor their security measures to meet their specific needs. Thus, with CASP, organizations can enjoy unparalleled flexibility and security in managing their digital assets. -
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Genesis
Genesis Global Trading
Genesis stands at the forefront of the global digital asset markets, serving as a comprehensive digital currency prime brokerage. Each month, Genesis handles billions in trades, loans, and digital currency transactions. Our experienced team, drawing on years of expertise from leading Wall Street investment banks, possesses an intricate knowledge of cryptocurrency markets. We offer a unified platform that simplifies access to digital asset trading, derivatives, lending, borrowing, custody, and prime brokerage services. This all-in-one solution is designed to meet all your digital asset requirements. As a fully operational digital currency prime broker, Genesis ensures that investors have a safe and efficient marketplace for trading, borrowing, lending, and storing their digital currencies. Clients can swiftly and dependably execute large orders. We operate as an OTC digital asset trading firm, fully regulated as a securities broker-dealer by the SEC and FINRA. Additionally, Genesis empowers clients to lend and borrow digital assets while gaining access to alternative liquidity options for hedging, speculation, and working capital needs, thereby enhancing their trading strategies and financial flexibility. -
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Kingdom Trust
Kingdom Trust
Kingdom Trust stands out as a prominent independent custodian that offers innovative custody and escrow services tailored for both individual and institutional investors. Its clientele comprises Self-Directed IRA and Solo 401(k) participants, single-member LLCs, family offices, investment advisors, advisory firms, broker-dealers, private equity funds, sponsors, and various investment platforms, whether domestic or international. The company's institutional pooled investment vehicle (PIV) custody service presents a bespoke solution catered to private equity, private debt, digital assets, venture capital, and fund of funds. Additionally, Kingdom Trust specializes in custodial services for qualified taxable accounts and separately-managed accounts (SMAs), as well as government-regulated, FATCA-registered, and IRS-recognized 402(b) plans, thereby assisting clients in fulfilling SEC regulatory obligations. Through this comprehensive custody framework, the firm also opens the door to investments in alternative assets such as digital currencies, real estate, precious metals, and private equity. By offering these diverse investment opportunities, Kingdom Trust enriches its clients' portfolios while ensuring compliance with industry standards. -
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Onchain Custodian
Onchain Custodian
Onchain Custodian® (ONC) provides a comprehensive custody and open finance solution tailored for institutional clients and accredited investors, allowing them to securely manage their digital assets in a compliant and insured manner. Based in Singapore, ONC delivers a globally standardized, resilient custody service that ensures the safekeeping of institutional digital asset investments while prioritizing an exceptional user experience. The flexibility of ONC's solution is designed to adapt to the evolving landscape of crypto custody, recognizing that adherence to best practices is vital for the industry's progress. Committed to establishing a global standard in digital asset custody, Onchain Custodian® collaborates closely with customers and partners. Our SAFE™ digital asset custody platform is engineered with top-tier security measures, and we also provide extensive reporting services to enhance the management and transparency of your digital asset holdings, ensuring clients have all the necessary tools at their disposal. This dedication to security and service positions ONC as a leader in the future of digital asset custody. -
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Ledger Vault
Ledger
Our Ledger Vault platform offers unparalleled security and adaptability for custodians, exchanges, crypto banks, and professional investors seeking to safeguard and oversee their private keys. By utilizing the comprehensive security features of the Vault along with Ledger's managed operations, you can effectively minimize risks to your business. Tailor your approval processes according to your governance policies and seamlessly integrate them into your operations using APIs. Monitor user activity and review compliance with your policies on the Vault platform to ensure that you meet all regulatory requirements. The platform also provides robust administration tools that facilitate the efficient management of numerous users, wallets, and transactions. We place our trust in human-defined rules while relying on secure hardware for their enforcement. Each private key is securely isolated, stored, and encrypted within a Hardware Security Module, ensuring that they are never directly accessed by everyday operators. The usage of keys for signatures is meticulously regulated according to customized governance protocols. Ultimately, it's about your keys, your regulations, your workflows, and your business, all under your control. This level of customization empowers you to operate in a manner that best suits your unique needs.
Crypto Custodians Overview
Crypto custodians are a crucial part of the crypto ecosystem. They provide a secure and compliant way to store digital assets such as cryptocurrencies, tokens, security tokens, or other digital assets. Crypto custodians provide what’s known as “custody services” to their clients, which are basically just ways of securely storing digital assets in a safe and compliant manner.
Custodians offer various levels of service depending on the type of asset they are responsible for holding and how much risk their customers wish them to take on. For example, some custodians may only offer cold storage services, where all digital assets are stored offline in an air-gapped environment; others might offer multi-signature wallets where several private keys have to be used in order to access funds; still others might specialize in providing institutional-grade custody solutions using advanced technology such as distributed ledger technology (DLT) or specialized hardware security modules (HSMs). The types of custody services offered depend upon the specific needs of each customer.
In addition to offering secure storage solutions for digital assets, crypto custodians also provide additional services such as compliance oversight and auditing services. This ensures that customers remain compliant with applicable regulations governing cryptocurrency trading and investing. Custodians must also ensure that any funds stored by their customers remain safe from theft or loss. As such, they may require customers to use two-factor authentication when signing transactions or accessing funds held by the custodian.
Crypto custodians can often act as intermediaries between buyers and sellers when it comes to exchanging digital currencies like Bitcoin. By acting as an intermediary, custodians ensure that both parties receive payment safely and efficiently without either party having to bear the risk associated with dealing directly with one another. This is particularly useful when trading between different types of currencies or across different platforms/exchanges since it eliminates counterparty risk while also allowing for quick settlement times due to the lack of third-party involvement during transfers.
Overall, crypto custodian services provide users with peace of mind knowing that their funds are being kept safe through secure storage solutions and that their investments remain compliant with applicable laws and regulations governing cryptocurrency trading activities. Additionally, crypto custodian services allow users to easily exchange currencies amongst themselves without having to assume the risks associated with direct peer-to-peer transactions.
Reasons To Use Crypto Custodians
- Security – Crypto custodians are designed to maximize security when storing digital assets. They use strong encryption protocols as well as offline storage options like hardware wallets or paper vaults to make sure that your funds remain safe from hackers, malware, and any other potential threats.
- Insured - Most crypto custodians provide insurance coverage for customers’ funds in the event of theft or loss due to an attack on their systems. This gives customers peace of mind knowing that their digital assets are protected even if something were to happen to their custodian service provider.
- Regulatory Compliance – Many crypto custodians are registered with financial regulators, meaning they must adhere to certain standards and regulations set by these authorities in order to continue operating legally. This helps ensure that customers’ funds remain safe and sound even in times of increased regulatory scrutiny of cryptocurrency investments.
- Accessibility - Crypto custodians often provide access to a wider range of services than self-custody solutions can offer, including trading platforms, exchange interfaces, tax management tools and more which can be helpful for those looking to take advantage of market opportunities quickly without worrying about the technical aspects involved in safely storing digital assets themselves.
The Importance of Crypto Custodians
Crypto custodians are incredibly important for anyone who is looking to store large amounts of cryptocurrency, or those who are engaging in a lot of transactions and trading. Cryptocurrency itself is an extremely volatile asset and as such, it needs to be handled with caution.
A crypto custodian can help provide security to these funds by taking on the responsibility of safeguarding them while allowing traders, investors and other users to remain secure in the knowledge that their money will not be stolen or manipulated by malicious actors.
Crypto custodians can provide a variety of services that may otherwise have not been available if users kept their own funds. Services such as cold storage, multi-signature wallets and Safe-Havens provide powerful protection from hackers, thieves and more. Allowing multiple signatures for transactions further increases security against unauthorised access or manipulation. Lastly, custodians offer sophisticated vaulting solutions which ensure that you’re able to access your funds even if there’s an outage or system failure at the exchange you’re using.
Having a reliable crypto custodian also allows users to track their investments over time thanks to its reporting methods which allow them to keep tabs on how their investments are performing without having to closely monitor the market on their own - ultimately saving time and effort for both novice and experienced investors alike.
All in all, crypto custodians have become increasingly popular amongst individuals who trade cryptocurrencies due to the range of benefits they offer along with added layers of security which individuals may not experience when keeping cryptocurrencies stored in exchanges alone.
Features Offered by Crypto Custodians
- Secure storage: Crypto custodians provide secure storage for a variety of digital assets, usually in the form of offline cold storage wallets. This ensures that digital assets are protected from physical damage, theft, and hacking attempts.
- Insurance coverage: Most crypto custodians offer insurance coverage to protect clients against financial losses caused by external breaches or other malicious activities. This helps ensure that funds are safe even if something happens to the crypto custodian itself.
- Compliance with regulations: Crypto custodians help clients stay compliant with applicable regulations like KYC/AML laws and GDPR regulations by providing verification services and data protection measures like two-factor authentication.
- Asset diversification: Crypto custodians can help clients diversify their investments across different asset classes such as stocks, bonds, commodities, and alternative investments like cryptocurrencies and tokenized real estate properties among many others.
- Audit trails: In order to track transactions and meet regulatory requirements, most crypto custodians offer audit trails so that clients can keep a detailed record of all their transactions on the blockchain.
- Account management: Crypto custodians typically provide account management features like access control lists (ACLs) which allow users to set up different user roles within an organization depending on permission levels for each member within the team or company hierarchy.
Who Can Benefit From Crypto Custodians?
- Institutional Investors: Crypto custodians are ideal for institutional investors who require secure storage and management of their crypto investments. Crypto custodians offer strong security protocols that protect against theft, like multiple levels of encryption, private key storage, and multi-signature capabilities.
- Private Investors: Private investors also benefit from the security and convenience of crypto custodians. Crypto custodians can provide private investors with secure storage solutions as well as access to analytics and market insights.
- Financial Institutions: Financial institutions require secure storage for cryptocurrencies, but many lack the resources or expertise to develop their own infrastructure for this purpose. Crypto custodians offer financial institutions a secure solution that allows them to store their client’s digital assets safely.
- Hedge Funds & Investment Firms: Crypto custodians are ideal for hedge funds and investment firms looking to increase their exposure to cryptocurrencies by investing in them. With a crypto custodian, these funds can securely manage large portfolios of digital assets without worrying about theft or other risks associated with storing digital assets.
- Exchanges & Trading Platforms: Crypto exchanges and trading platforms require reliable and secure storage solutions if they are going to remain competitive in the growing cryptocurrency space. By offering custody services, they can reduce customer risk while providing an attractive service offering that meets their customers’ needs.
How Much Do Crypto Custodians Cost?
The cost of a crypto custodian varies greatly depending on the services required. Generally, crypto custodians set their fees based on the total value held and the number of transactions completed. For example, a large-scale institution with millions of dollars in assets may require more sophisticated security services, which will cost more than smaller investments from individuals or businesses.
For small-scale investors, such as those that just want to buy cryptocurrencies like Bitcoin or Ethereum and store them safely, some custodians offer free accounts with limited features and storage capacity. If a user needs an upgraded account with full access to all the features and additional protection, they might be charged anywhere between 0.05% - 0.30% of the total asset value held annually.
On average, most institutional investors will pay somewhere between 0.50%-2.00% for custody services per year; however, individual circumstances can vary widely depending on the amount of assets held in storage and the level of protection required by specific users or businesses. Additionally, there might also be one-time setup fees associated with opening an account as well as additional charges for withdrawal requests or other special services requested outside of traditional custodial offers (such as support for non-traditional digital assets). In any case, it's important to research different options carefully before committing to a particular service provider so you can find what best suits your specific needs at a fair price point.
Risks To Be Aware of Regarding Crypto Custodians
- Security Risk: Crypto custodians typically store digital assets on an online platform, making them vulnerable to cyber threats such as hacking, malware, and malicious actors. Additionally, any missteps or mistakes made by the custodian could potentially result in a financial loss for their clients.
- Regulatory Risk: Since the cryptocurrency industry is still largely unregulated and lacks clear standards of operation, there is a high risk that the crypto custodian’s activities may run afoul of local laws and regulations. This could leave investors exposed to penalties or even criminal prosecution if these laws are broken inadvertently.
- Liquidity Risk: Since cryptocurrencies are not always readily convertible into cash or other liquid assets in times of need, this increases the overall riskiness of holding such digital assets within a custodial account. In extreme cases, it could lead to delays in payments due to lack of liquidity in the markets during certain market conditions.
- Counterparty Risk: The crypto asset held within a custody account is only as secure as the service provider themselves – therefore any potential counterparty-related issues (e.g., bankruptcy) could hugely impact investors negatively if they aren’t adequately protected against such occurrences.
Types of Software That Crypto Custodians Integrate With
Crypto custodians can integrate with a variety of different types of software to help facilitate safe and secure storage of cryptocurrencies. Examples include asset management systems that allow users to easily view their entire portfolio, accounting software that allows for accurate bookkeeping and reporting, wallet applications that make transferring funds easier, trading interfaces that enable direct exchange between currencies, and many more types of custom applications designed specifically for the purpose of securely storing digital assets. By integrating these various types of software, crypto custodians are able to provide users with a comprehensive suite of services for managing their digital portfolios in the most efficient manner possible.
Questions To Ask When Considering Crypto Custodians
- What type of crypto assets do they offer custodial services for?
- Do they provide secure storage and custody, as well as trading capabilities?
- How experienced is the team that works on their custodial platform?
- How is the security of their custodial platform guaranteed - what types of encryption, firewalls and other measures do they have in place to protect customer funds?
- What types of insurance coverage do they offer for customer accounts?
- Are there any additional fees related to using their custodial services (e.g., withdrawal/deposit charges)?
- Does their facility meet local regulatory requirements (e.g., AML/KYC)?
- Are digital assets held in segregated accounts or pooled accounts?
- Is there 24/7 support available in case customers need assistance with any issues regarding their deposit or withdrawal process?
- Is auditing performed regularly by a third-party firm to ensure the safety and integrity of deposits and withdrawals?