But among the numerous custody platforms, which ones are worthy of trust by high net worth investors? And what successful application cases can we learn from?
In this article, Portal Labs will review the top 10 influential platforms in the crypto asset custody industry to help you make wise choices in this complex market.
What is crypto custody?
Crypto asset custody, in simple terms, is the safekeeping, management and value-added of crypto assets through professional institutions. For high net worth investors, this is not only an asset protection tool, but also a core service that allows them to focus on strategic investment and optimize asset allocation.
The services provided by the custody platform to investors include:
Cold wallet storage: ensures high security of assets;
Compliance services: ensuring that assets comply with international financial regulatory standards;
Liquidity management: ensuring assets can be flexibly converted into cash when needed;
Tax optimization: Automatically generate tax reports to reduce tax burden.
Compared with using cold wallets for storage, the advantages of third-party custody are:
Security
Although cold wallets can technically prevent online hacker attacks, the security provided by third-party custody is more comprehensive. Through professional custodians, assets are not only stored in cold wallets, but also enjoy multi-signature technology and insurance protection. In this way, investors can not only avoid hacker attacks, but also get insurance compensation in extreme cases.
Compliance and transparency
High net worth investors often face compliance requirements around the world. Custody platforms use compliance measures such as KYC (customer identity verification) and AML (anti-money laundering) to ensure that investors' assets comply with the financial regulatory laws and regulations of various countries. In addition, the regular audit reports and transparent asset management provided by the custody platform enable investors to understand their asset status at any time and ensure the compliance and transparency of asset management.
Liquidity
Third-party custody platforms provide investors with a more convenient way to manage their assets. Through custody platforms, investors can adjust their portfolios or liquidate assets more quickly without having to worry about accessing cold wallets. Custody platforms also typically work with multiple exchanges and financial institutions to ensure the liquidity of assets and be able to quickly execute transactions when needed.
Tax Optimization
Custody platforms usually provide automated tax report generation services to help investors avoid tax risks and reduce tax burdens. In this way, investors can not only ensure asset compliance, but also plan tax issues reasonably on a global scale and avoid potential risks caused by personal management.
Management Burden
For high net worth investors, the complexity and risks of managing crypto assets are not small. The 24/7 customer support and account recovery functions provided by the custody platform can ensure that investors can get help at any time and avoid asset losses due to operational errors or technical problems.
Finally, custody platforms usually support the management of multiple crypto assets, including Bitcoin, Ethereum, DeFi tokens, and NFTs, etc. This allows high-net-worth investors to manage diversified assets on the same platform without having to spread them across multiple platforms, thus improving management efficiency.
Mainstream Crypto Custody Platforms
Now let’s take stock of the 10 most influential crypto asset custody platforms and look at their respective advantages and features.
BitGo
Founded: 2013
Service highlights: BitGo is the industry's leading cold wallet custody platform, providing multi-signature and asset insurance services to ensure the highest security of crypto assets.
Who it serves: BitGo provides custody services to several world-renowned funds and crypto exchanges, including Gemini and Coinbase.
Applicable customers: Mainly serves large institutional investors and high net worth investors, especially those who require high security and compliance.
BitGo has always been favored by global financial institutions and exchanges. Due to its outstanding security, compliance support and liquidity management, it occupies an important position in the field of crypto asset custody.
Anchorage
Founded: 2017
Service highlights: Anchorage is the world's first crypto asset custody platform to obtain compliance approval, providing cold storage and compliance custody services.
Who it serves: Anchorage provides custody services to a number of large asset management companies, financial institutions, and large funds, such as Pantera Capital, BlockFi, etc.
Applicable customers: We focus on providing custody services to financial institutions, large asset management companies and institutional investors, and are particularly suitable for customers with compliance requirements.
Anchorage provides secure crypto asset custody services to institutional investors through its innovative technology and compliance certification, and has gradually become one of the most trusted custody platforms in the crypto industry.
Fidelity Digital Assets
Founded: 2018
Service highlights: Fidelity Digital Assets provides crypto asset custody services combined with traditional financial stability, supporting cold wallet storage and high compliance services.
Who it serves: Fidelity provides custody services to traditional financial institutions, family offices and institutional investors, with clients including Fidelity Asset Management and the New York Stock Exchange.
Applicable customers: long-term investors, financial institutions, family offices.
As part of the financial giant Fidelity, Fidelity Digital Assets combines the advantages of traditional financial services to become the preferred crypto asset custody platform for institutional investors.
Coinbase Custody
Founded: 2018
Service highlights: Coinbase Custody provides investors with cold storage and multi-signature services to ensure the security of crypto assets and provide insurance protection.
Who it serves: Coinbase Custody provides custody services to institutional investors, exchanges, and crypto funds. Its clients include Pantera Capital, Grayscale, and others.
Applicable customers: institutional investors, crypto exchanges, investment funds.
As a subsidiary of Coinbase, Coinbase Custody provides highly secure and compliant custody services and is widely trusted by global investment funds and exchanges.
Gemini Custody
Founded: 2015
Service highlights: Gemini Custody provides custody services that comply with the regulatory requirements of the New York Department of Financial Services (NYDFS), supporting multi-signature and cold storage technologies.
Who it serves: Gemini Custody serves crypto funds, large institutions and financial services firms such as Galaxy Digital and VanEck.
Applicable customers: institutional investors, crypto exchanges, investment funds.
Gemini Custody's compliance and high security make it one of the most trusted crypto asset custody platforms in the world, especially in the United States.
Fireblocks
Founded: 2018
Service highlights: Fireblocks provides industry-leading cold storage and multi-signature technologies, and focuses on providing comprehensive asset management services for institutional investors.
Who it serves: Fireblocks provides custody services to a number of financial institutions and crypto exchanges, including Wellington Management, Revolut, and others.
Applicable customers: financial institutions, crypto exchanges, institutional investors.
Fireblocks' technology combines security and flexibility to provide institutional clients with efficient asset custody and management services.
Trustology
Founded: 2018
Service highlights: Trustology provides customized crypto asset custody services for individual and institutional investors, especially tailored for high net worth clients.
Clients served: Trustology serves a number of cryptocurrency exchanges and family offices, including Bitfinex.
Applicable customers: small and medium-sized investment institutions, high net worth individuals.
Trustology is committed to providing personalized services to high-net-worth clients with special needs and is an emerging force in the crypto asset custody industry.
Ledger Vault
Founded: 2018
Service highlights: Ledger Vault is a custody platform for Ledger hardware wallets, providing cold wallet storage and multi-signature solutions to ensure asset security.
Who it serves: Ledger Vault provides custody services to crypto exchanges, financial institutions, and crypto funds.
Applicable customers: Crypto exchanges, financial institutions, and crypto funds.
Ledger Vault has become the platform of choice for multiple crypto exchanges and financial institutions thanks to its hardware security technology and cold storage solutions.
Luno
Founded: 2013
Service highlights: Luno provides crypto asset custody and trading services, supports a variety of mainstream digital currencies, and ensures the security and liquidity of assets.
Target customers: Luno’s clients mainly include international investors and crypto exchanges.
Applicable customers: International investors, crypto exchanges, small crypto funds.
Luno provides crypto asset services in multiple markets around the world, especially in emerging markets where it has a large user base.
Bitstamp Custody
Founded: 2011
Service highlights: Bitstamp Custody provides multi-signature and cold wallet custody services, focusing on providing high-security storage solutions for crypto assets for institutions and large investors.
Who it serves: Bitstamp Custody provides custody services to institutional investors, large funds, and crypto exchanges. Its clients include CoinShares and Xapo.
Applicable customers: Mainly serves large institutional investors, crypto exchanges and investment funds, especially those who require high security and compliance guarantees.
Bitstamp Custody relies on Bitstamp's brand and deep background in the global financial market to bring professional services and high credibility to the field of crypto asset custody. Its custody services are widely favored by institutions and funds, becoming an important choice for institutional investors.
