To make digital currency investing more accessible and secure for large investors, several cryptocurrency custody platforms have launched in the recent years, each providing the best of its services.
A question that concerns every crypto investor who has invested a huge amount is on ‘how to store their funds safely and securely?’.
Numerous reports of having even the most secured of wallets being hacked or lost have birthed to services offering additional security.
Custody platforms are specifically designed to prevent loss of funds due to misplaced private keys or wallet thefts.
One might even have the risk of forgetting their private key for which there are no any recoverable options.
He/she will forever lose their precious cryptocurrencies due to not having the private keys.
In cases like these crypto custody will provide solution on accessing the private keys, similar to the lost PIN code for a debit card that is replaced by a central authority.
Cryptocurrency custody solutions are perfect for securing large volumes of digital assets coupled with insurance and high security.
One must note that crypto custodians are for larger investors serving as trusted third parties.
Moreover, clients do not need to know the technical know-hows on how to store cryptocurrencies and secure their wallets.
Custodians are responsible for applying the most advanced methods to prevent hackers or other malicious threats from accessing the funds under the custodians.
Best Cryptocurrency Custody Providers
Bakkt has launched its own crypto storage solutions.
Bakkt Warehouse is designed for both personal and institutional clients,
Bakkt Warehouse features ‘warm’ online and ‘airgapped’ offline storage, a dual wallet technology.
Bakkt Warehouse global institutional users such as Patera Capital and Galaxy Digital uses Bakkt’s crypto custody service.
- Certified by the New York Department of Financial Services
- Online and offline storage options
- Available for both institutional and individual investors
BitGo was launched in 2013, offering institutional-grade custody policy controls.
BitGo’s proven cold storage are housed in bank-grade Class III vaults, where all funds are cryptographically secured and insured.
No of Digital Assets Supported: 100+
- Bank-grade cold storage protection
- Institutional-grade custody policy controls
- 24/7 support
- Multi-use accounts
- Spending limits
Coinbase is the largest and most popular crypto exchange in the United States, in addition to being a wallet and a custodian.
In fact, its custody service is a relatively recent addition.
Coinbase believes that institutional investors are about to go crypto.
Hence the importance of crypto custody services are necessary.
Coinbase Custody provides bank-grade segregated cold storage, providing clients with asset insurance and round-the-clock customer support.
- 100% bank-grade segregated cold storage
- Funds are insured
- 24/7 support
- Customized reporting
- Multi-user accounts
- Multi-signature transactions
Fidelity Digital Assets provides services such as enterprise-grade security for custody and execution services.
Fidelity Digital Assets boasts of a highly experienced and skilled team of financial and technological experts.
- Offline vaulted deep-cold storage
- Enterprise-grade cyber and operational security controls
- 24/7 Support
- Tailormade custodianship solutions
Crypto exchange, Gemini also offers custodian services aimed at institutional investors
Gemini Custody provides the highest of security, providing a multi-layer security architecture comprising of ‘HardwareSecurity Molecules (HSM).
Gemini’s industry-grade security gives top-level investors user-friendly environment for storing cryptocurrencies in a safe and secured way.
- Same day withdrawals
- ‘Hardware Security Molecules’
- User-friendly platform
- 24/7 support
- Dedicated account representatives
itBit is originally an exchange launched in 2012 and also acting now as a regulated custodian.
Its services include regular reports on the state of clients’ assets, advanced asset protection, as well as holding capital reserves against customer deposits.
itBit’s institutional 100% cold storage solutions are customized on a per-client basis, also verification and asset audit reporting.
- Highest Security
- 100% cold storage solutions
- 24/7 support
Kingdom Trust already has experience in working with institutional clients such as hedge funds, banks, RIAs, and also others interested in investing in crypto.
It offers insurance for deposited assets and applauded for its ability to protect funds.
- 100% cold storage solution
- Fully insured
- Fully compliant and regularly audited
Xapo is a user-friendly custodian wallet for individual investors, acquired by Coinbase.
Xapo is also one of the oldest bitcoin wallets.
Xapo enables users to store FIAT and BTC in cold storage.
Funds on Xapo are fully insured against hacking and bankruptcy.
- Insured against hacks and Xapo going bankrupt
- Cold storage protected by- armed guards, surveillance, biometric locks
- Multi-signature transactions, withdrawal
More and more cryptocurrency custody solutions have emerged in the last few years to service the growing institutional investor demand for bitcoin and other digital currencies.
Cryptocurrency custody solutions secures investors funds and helps prevents assets from being lost.
In crypto custodian services, investors don’t need to worry on their cryptocurrencies as custodians takes the responsibility for them.
Therefore, crypto custody is the only solution with a higher trust level.