Last Updated on 2 weeks by Ameer Hamza
Crypto investment has become more prominent in recent years. Interest in crypto has spread across many countries, with numerous investors deciding to take a bet on the assets. However, while crypto investment has become more prominent, investors are still concerned about the safety of their assets.
While one of the major features of blockchain technology is its security, many crypto exchanges have been hacked, with millions of crypto assets lost in the process. Thus, people who invest in crypto also need to consider the possibility of losing their funds to hack attacks or any other form of security compromise.
However, many investors cannot afford this risk. For instance, companies often invest a significant part of their funds in crypto. Such companies cannot afford to lose such funds, as it will drastically affect their business. This situation led to the rise of crypto custody providers.
Who Are Crypto Custody Providers?
Crypto custody providers provide secure off-chain storage to investors who intend to protect their crypto assets from the risk of loss or theft. Crypto custodians are fully dedicated to the security of customers’ assets. Thus, they have well-guarded systems to ensure that investors’ private keys are stored securely. Government agencies, hedge funds, and general institutional investors often use crypto custodians.
Crypto Custody Providers to Consider in 2024
Coinbase custody is one of the most popular crypto custodians. It is the custody arm of Coinbase, a major crypto exchange. Coinbase Custody has been providing custody services for over a decade, with millions of dollars under its management. This accounts for the largest number of assets held by any crypto custodian. The catch with Coinbase Custody is not only its popularity but also its regular audits. Its systems have consistently maintained\ the SOC 1 Type 2 and Soc 2 Type 2 audits.
Geminin Custody operates a complex and specially designed infrastructure, making it suitable for institutional investors. It is also ideal for individual investors seeking to protect their assets with the highest security levels. Interestingly, the company recently surpassed $30 billion in crypto under its management. This indicates that Gemini Custody has become a household name in the crypto ecosystem. Also, like Coinbase Custody, Gemini Custody has passed the SOC 1 and SOC 2 Type 2 audits. The catch with this custodian is the insurance it maintains. Gemini Custody recently announced that it had secured a $200 million cold storage insurance coverage for specific losses on its platform.
Cactus Custody started operations in 2019. Despite being a young company, it has managed to make a name for itself in the crypto custody business. The company currently manages over $10 billion with over 130 institutional clients. It has also completed the SOC 2 Type 1 audit.
Bitgo has been in operation since 2013 and provides services to a broad spectrum of clients, including major exchanges like Bitstamp. The company recently announced that it had hit a milestone of $16 billion in assets under management with over 400 clients.
Security is a primary consideration if you intend to invest a significant part of your funds in crypto. Hence, exploring crypto custodians that will likely provide maximum security for your assets is vital.