As the cryptocurrency asset market matures, more and more high net worth investors are entrusting their cryptocurrency assets to third-party institutions to ensure asset security and comply with global regulatory requirements. The emergence of cryptocurrency asset custody services fills the security, liquidity, and compliance gaps faced by high net worth investors in cryptocurrency asset management.
But among many custody platforms, which are trustworthy for high net worth investors? And what successful application cases can we learn from?
In this article, Portal Labs will review the 10 most influential platforms in the cryptocurrency asset custody industry, helping you make informed choices in a complex market.
What is cryptocurrency asset custody?
Cryptocurrency asset custody, simply put, is the professional management, safekeeping, and appreciation of cryptocurrency assets through specialized institutions. For high net worth investors, it is not just a tool for asset protection, but also a core service that allows them to focus on strategic investments and optimize asset allocation.
The services provided by custody platforms to investors include:
Cold wallet storage: Ensures high asset security;
Compliance services: Ensures assets meet international financial regulatory standards;
Liquidity management: Ensures assets can be flexibly liquidated when needed;
Tax optimization: Automatically generates tax reports to reduce tax burdens.
Compared to using a cold wallet for storage, the advantages of third-party custody include:
Security
Although cold wallets can technically prevent online hacking attacks, the security guarantees provided by third-party custody are more comprehensive. Through professional custody institutions, assets are not only stored in cold wallets but also benefit from multi-signature technology and insurance coverage. This way, investors can not only avoid hacking but also receive insurance compensation in extreme situations.
Compliance and transparency
High net worth investors often face global compliance requirements. Custody platforms ensure that investors' assets comply with financial regulations in various countries through compliance measures such as KYC (Know Your Customer) and AML (Anti-Money Laundering). Additionally, regular audit reports and transparent asset management provided by custody platforms enable investors to stay informed about their asset status, ensuring compliance and transparency in asset management.
Liquidity
Third-party custody platforms provide investors with a more convenient asset management approach. Through custody platforms, investors can quickly adjust their portfolios or liquidate assets without worrying about the access issues of cold wallets. Custody platforms typically also collaborate with multiple exchanges and financial institutions to ensure asset liquidity and can execute transactions quickly when needed.
Tax optimization
Custody platforms typically provide automated tax reporting services to help investors avoid tax risks and reduce tax burdens. This way, investors can ensure asset compliance while also reasonably planning tax issues globally, avoiding potential risks arising from personal management.
Management burden
For high net worth investors, the complexity and risks of managing cryptocurrency assets are not small. The 24/7 customer support and account recovery features provided by custody platforms can ensure that investors can get help at any time, avoiding asset losses due to operational errors or technical issues.
Finally, custody platforms typically support the management of various cryptocurrency assets, including Bitcoin, Ethereum, DeFi tokens, and NFTs. This allows high net worth investors to manage diversified assets on the same platform, avoiding the need to spread across multiple platforms, thus improving management efficiency.
Mainstream cryptocurrency custody platforms
Now let's review the 10 most influential cryptocurrency asset custody platforms and see their respective advantages and features.
BitGo
Established: 2013
Service highlights: BitGo is the industry-leading cold wallet custody platform, providing multi-signature and asset insurance services to ensure the highest security of cryptocurrency assets.
Service targets: BitGo provides custody services for several globally renowned funds and cryptocurrency exchanges, including Gemini and Coinbase.
Applicable clients: Mainly serves large institutional investors and high net worth individuals, especially those requiring high security and compliance.
BitGo has always been favored by global financial institutions and exchanges for its outstanding security guarantees, compliance support, and liquidity management, occupying an important position in the cryptocurrency asset custody field.
Anchorage
Established: 2017
Service highlights: Anchorage is the world's first cryptocurrency asset custody platform to receive compliance approval, providing cold storage and compliant custody services.
Service targets: Anchorage provides custody services for several large asset management companies, financial institutions, and large funds, such as Pantera Capital and BlockFi.
Applicable clients: Focused on providing custody services for financial institutions, large asset management companies, and institutional investors, especially suitable for clients with compliance requirements.
Anchorage, through its innovative technology and compliance certification, provides secure cryptocurrency asset custody services for institutional investors, gradually becoming one of the most trusted custody platforms in the cryptocurrency industry.
Fidelity Digital Assets
Established: 2018
Service highlights: Fidelity Digital Assets provides cryptocurrency asset custody services that combine the stability of traditional finance, supporting cold wallet storage and high compliance services.
Service targets: Fidelity provides custody services for traditional financial institutions, family offices, and institutional-level investors, with clients including Fidelity Asset Management and the New York Stock Exchange.
Applicable clients: Long-term investors, financial institutions, family offices.
Fidelity Digital Assets, as part of the financial giant Fidelity, combines the advantages of traditional financial services and has become the preferred cryptocurrency asset custody platform for institutional investors.
Coinbase Custody
Established: 2018
Service highlights: Coinbase Custody provides investors with cold storage and multi-signature services, ensuring the security of cryptocurrency assets and providing insurance coverage.
Service targets: Coinbase Custody provides custody services for institutional investors, exchanges, and cryptocurrency funds, with clients including Pantera Capital, Grayscale, and others.
Applicable clients: Institutional investors, cryptocurrency exchanges, investment funds.
As a subsidiary of Coinbase, Coinbase Custody provides highly secure and compliant custody services, widely trusted by global investment funds and exchanges.
Gemini Custody
Established: 2015
Service highlights: Gemini Custody offers custody services that comply with the regulatory requirements of the New York Department of Financial Services (NYDFS), supporting multi-signature and cold storage technology.
Service targets: Gemini Custody serves clients including cryptocurrency funds, large institutions, and financial service companies like Galaxy Digital and VanEck.
Applicable clients: Institutional investors, cryptocurrency exchanges, investment funds.
Gemini Custody's compliance and high security make it one of the most trusted cryptocurrency asset custody platforms globally, especially in the United States.
Fireblocks
Established: 2018
Service highlights: Fireblocks provides industry-leading cold storage and multi-signature technology, focusing on providing comprehensive asset management services for institutional investors.
Service targets: Fireblocks provides custody services for multiple financial institutions and cryptocurrency exchanges, with clients including Wellington Management and Revolut.
Applicable clients: Financial institutions, cryptocurrency exchanges, institutional investors.
Fireblocks' technology combines security and flexibility, providing efficient asset custody and management services for institutional clients.
Trustology
Established: 2018
Service highlights: Trustology offers customized cryptocurrency asset custody services for individual and institutional investors, especially tailored for high net worth clients.
Service targets: Trustology serves clients including cryptocurrency exchanges and family offices, such as Bitfinex.
Applicable clients: Small and medium-sized investment institutions, high net worth individuals.
Trustology is committed to providing personalized services for high net worth clients with special needs and is an emerging force in the cryptocurrency asset custody industry.
Ledger Vault
Established: 2018
Service highlights: Ledger Vault is the custody platform for Ledger hardware wallets, providing cold wallet storage and multi-signature solutions to ensure asset security.
Service targets: Ledger Vault provides custody services for cryptocurrency exchanges, financial institutions, and cryptocurrency funds.
Applicable clients: Cryptocurrency exchanges, financial institutions, cryptocurrency funds.
Ledger Vault, with its hardware security technology and cold storage solutions, has become the platform of choice for multiple cryptocurrency exchanges and financial institutions.
Luno
Established: 2013
Service highlights: Luno provides cryptocurrency asset custody and trading services, supporting various mainstream digital currencies, ensuring asset security and liquidity.
Service targets: Luno's clients mainly include international investors and cryptocurrency exchanges.
Applicable clients: International investors, cryptocurrency exchanges, small cryptocurrency funds.
Luno provides cryptocurrency asset services in multiple markets worldwide, especially with a strong user base in emerging markets.
Bitstamp Custody
Established: 2011
Service highlights: Bitstamp Custody offers multi-signature and cold wallet custody services, focusing on providing high-security storage solutions for institutional and large-scale investors.
Service targets: Bitstamp Custody provides custody services for institutional investors, large funds, and cryptocurrency exchanges, with clients including CoinShares and Xapo.
Applicable clients: Mainly serves large institutional investors, cryptocurrency exchanges, and investment funds, especially those requiring high levels of security and compliance assurance.
Bitstamp Custody, relying on Bitstamp's brand and deep background in global financial markets, brings professional services and high credibility to the cryptocurrency asset custody field. Its custody services are widely favored by institutions and funds, becoming an important choice for institutional investors.