Crypto Custody Market Overview

Cryptocurrency custody providers seem to be springing up all over the global digital landscape in 2019, and the crypto platform Coinbase emerging as the leader in the sector.

On the issue, Gongpil Choi, director of the Korea Institute of Finance - an agency that works hand-in-hand with the local government to research and evaluate financial policies that are designed to strengthen the country's financial sector - was quoted as saying: "Even the traditional financial sector has seen the establishment of the custody market. Cryptocurrencies are more risky than traditional assets and the custody market in crypto will become a rapidly growing market."

Coinbase is dominating the custody marketCoinbase's recent foray into the institutional-grade custody solutions market indicates the firm's resolve to dominate this rapidly growing domain.

"Global market uncertainties have resulted in crypto increasingly becoming a safe haven. More and more crypto firms are gaining awareness of the huge potential and the current market gap for onboarding institutions to the crypto world. This marks an important shift among crypto giants to win over Wall Street."

Lastly, the recent increase in demand for crypto custody solutions is quite natural, especially considering that institutional folks are buying over $200 million to $400 million worth of crypto per week these days.

"We've experienced significant demand and interest from institutional investors for regulated custody solutions, it is no wonder that services such as custody solutions have been gaining traction. On top of custody, yield and risk management products have been highly sought after in the space."

Coinbase takes over Xapo's custody business Around two weeks back, Coinbase CEO Brian Armstrong confirmed that his company had entered into an official agreement with storage giant Xapo in order to take over the firm's custody business.

Coinbase Custody's Assets Under Custody comprises funds that are owned by more than 120 clients.

Coinbase's cryptocurrency custody service was launched in July last year for institutional clients based across Europe and the U.S. Some of the currencies that are supported by the platform include Bitcoin, Bitcoin Cash, Ether, Ethereum Classic, XRP and Litecoin.

Custody solutions are on the riseAccording to a research piece released by the Bank of New York Mellon, the demand for crypto-centric custody solutions is currently at an all-time high.