Rise of the Crypto Custodians

Whereas custody has historically been a low-margin activity at the back end of the wealth management business, broad trends are now abetting the growth of a market for custody services. Global banks and custodians are institutionalizing the demand for digital assets, signaling a belated recognition of crypto as a legitimate asset class. Further, regulatory bodies are increasingly engaged in the conversation surrounding crypto. Finally, improvements to the blockchain chassis will help fuel the market for NFTs and DeFi applications. All of this speaks to opportunities for wealth managers and their clients.

Key questions discussed in this report:

• What are the trends behind the rise of the crypto-custody marketplace?
• How can cash management be used as a springboard into digital assets?
• How can custodians and their partners balance security concerns with a focus on the user experience?

Companies Mentioned:

Bancor, Binance, Coinbase, Coincheck, Crypto.com, Cryptopia, Kucoin, Zaif