Investment Operations

Aite Report Addresses Crypto-Asset Custody


As the cryptocurrency ecosystem continues to evolve, clients are increasingly demanding a single access point for their trade execution, asset custody, and post-trade services, according to Aite Group’s latest report.

For a long time, institutional investors have relied on traditional custodians to safeguard their holdings. But cryptocurrencies create technical challenges and reputational risks that have kept traditional custodians from serving this emerging asset class. The custody conundrum has become the last piece of the puzzle for the institutional cryptocurrencies market, and a few blockchain-focused fintech firms have decided to take on this challenge. Aite Group’s latest report, Institutional Crypto-Asset Custody: The Players Incumbents Need to Watch, examines fintech firms from different areas of the cryptocurrency ecosystem that have rolled out crypto-asset custody solutions in 2018.

“We expect to see competition heating up in 2019, with more incumbent players coming into the crypto-asset custody space,” says Gabriel Wang, analyst at Aite Group.

According to Aite, the new Impact Note focuses on digital asset custody and examines the key components and requirements of an institutional-grade custody solution. Based on Aite Group interviews conducted between April and October 2018 with participants in the institutional crypto-asset markets, this report helps firms navigate the solutions currently available in the market and profiles BitGo, Coinbase, Digital Asset Custody Company, Kingdom Trust, and Ledger.