The digital asset industry reached over $3 trillion at its peak in November 2021. However, the custodial part of the market remained at the more modest mark of $447.9 billion in 2022.
The report puts the number of custody service providers at 120 as of April 2023, dividing them into two broad categories: third-party service providers and self-custody solutions. Among the key institutional developments cited in the report are a rise of interest in crypto staking, resulting from the Ethereum Merge, and the appearance of nonfungible tokens and the metaverse, attracting institutional investors.The key challenge for the custody industry is, according to the report, security.
The report splits them into two categories: third-party and self-custody solutions. Crypto staking, NFTs and metaverse are key trends for institutional investors.