Where Are All The Cryptocurrency Custody Solutions?
In the land of cryptocurrency custody, 1000 flowers are blooming.
My partner at JM3 Capital, Jean-Philippe Jabre has written-up a good blog post that includes a comprehensive list of cryptocurrency custody solutions and options.
Here’s the Medium post link: A List of Cryptocurrency Custody Solutions for Consumers and Institutions Please go and read it.
In the past few months, our teams at JM3 Capital and Jabre Capital Partners have surveyed the custody market and spoken to several providers, including meeting with custodians, reviewing their control reports, and following-up with reference calls. As we engage with the selected ones, we also plan to continuously monitor their financial health.
While doing this work, we have learned a number of things about this emerging services segment, and discovered 40 solutions and products that we have shared in an openly available Google Sheet.
Although self-custody is a native feature of the blockchain, it is not so easy (or safe) to do so, especially if you are an institution, or if you hold large sums of cryptocurrency.
It is also as important to know about how your digital assets are stored, as it is to understand about the movements of these assets, from one owner to another, or from straight custody to a trading/exchange/brokerage service, and back into custody or to a fiat account potentially.
The world of cryptocurrency can learn a lot from the traditional finance world who has been implementing custodianship practices for several decades. That’s where due diligence comes into play. After all, digital assets are just another form of value that must be securely preserved. Fund managers have a fiduciary responsibility to safe-keep investments made on behalf of investors.
In addition to JP’s article, here’s how the geographical distribution of these solutions stack-up. Europe is definitely leading this space with 21 entries, while the USA leads as an individual country with 16 solutions. But when looking at Institutional solutions only, Switzerland and the USA are neck to neck with 6 solutions each.
This segment is still new and evolving, and we expect new entrants will continue to shape its maturity.
Here is the embedded Google Sheet and link to it. Please feel free to add new ones as a comment, and we will update the sheet continuously.