We are pleased to share the 1st Digital Asset Custody Survey as published by Digital Asset Custody, a comparison and selection platform for digital asset custodians. Crypto Storage AG was invited to contribute to the study.
“The survey shows the developments we experience with financial intermediaries: they seek deep tech expertise and advice on custody solutions, tokenisation projects, security implications, and risk management for their operational development.” says Crypto Storage AG CEO Stijn Vander Straeten.
Read the full study here or read the executive summary below.
Are you looking for a custodian solution for your business? Click here to learn more about Crypto Storage and our top-tier infrastructure solution.
1st Digital Assets Custody Survey
- Most of the participating companies were founded in 2017 or later, with a clear peak for the custodian segment in 2018, but also tech providers and “other” show most new start-ups in 2018.
- Switzerland seems to be a very attractive domicile, especially for Tech Providers, while the UK and Germany seems to be very attractive for custodians.
- Most respondents did not want to disclose how many digital assets they have under custody (5 answers); how many private keys they manage (9 answers); how many transactions they usually make per day (5 answers); what the median value of an usual transaction is (4 answers).
- Among the companies that provided information on their assets under custody, there was a significant increase from 1 January to 31 September 2019, with growth ranging from 100% to 370%.
- The bandwidth of the tokens that can be stored is large. As expected, Bitcoin and ERC-20 tokens are far ahead, followed by Ethereum, Litecoin and Ripple. Privacy coins such as Monero or Dash and Stellar follow. 3 companies stated that they could keep or be able to keep all kind of tokens.
- Two participants responded that they don´t support specific chains due to regulation.
- Unclear definitions and guidance from regulators around the world make it hard to exactly determine which entity will be seen as a custodian and which will be classified as a tech provider or “other”. This is an important point, as tech providers and “others” might not be regulated from the authorities.
- 8 out of 9 custodians have KYC and AML procedures in place. 2 tech providers indicated that they have none; one custodian indicated that those are planned but not yet implemented, as did another tech provider.
- 7 participants plan to offer insurance, 13 participants already offer insurance.
- 7 participants have already experienced hacking attacks, with one participant stating that an actual loss occured.
- Interestingly, only 11 participants have implemented emergency communication procedures with all partners.
- 6 participants stated that they are already regulated by a financial authority, with surprisingly one tech provider in the field.
- 21 of the 23 participants stated that they have the new regulation in Germany in sight that came into force on January 1st, 2020.
- By far the biggest point of criticism was a fragmented regulatory world, with almost every participant declaring that passporting licenses would be a key element for further success