As the cryptocurrency landscape expands, the need for secure and reliable crypto custody services has become crucial. Crypto custodians play a critical role in safeguarding digital assets through services like cold storage, risk management, and online security solutions. As the market grows and the value of cryptocurrencies rises, the need for reliable custody services to safeguard the assets has surged. This blog will provide a comprehensive guide to the top crypto custody service providers.
What is Crypto Custody?
Crypto custody refers to the secure storage, management, and protection of crypto assets on behalf of their owners. In traditional finance (TradFi), a custodian is a platform that holds and keeps track of the ownership, transfer, and status of assets. Similarly, in the crypto market, a custodian is a regulated entity that provides security, protection, and management of cryptocurrency assets.
Top Crypto Custody Service Providers
Fireblocks Custody
Fireblocks is a popular crypto custodian platform specializing in DeFi compatibility and state-of-the-art security technology. Founded in 2019, the platform provides insurance for hot and cold wallets. It delivers enterprise-grade infrastructure for handling digital assets and facilitates the safe transfer of assets, specifically addressing the needs of exchanges, hedge funds, and neo-banks.
It has an MPC (Multi-Party Computation) protocol called the MPC-CMP that has 8x transaction speed and allows users to choose between hot and cold wallets. MPC wallets are more secure, flexible, and efficient for storing digital assets. Furthermore, Fireblocks uses its multi-layer security technology to eradicate single-point failures and safeguard digital assets from cyber-attacks and human error. It allows for a 90% reduction in transaction fees, which helps minimize the scaling costs for its customer’s business.
BitGo Custody
BitGo is one of the top crypto custodians and is well known for its security solutions and multi-signature technology. The platform is mainly a cold wallet custody provider and ensures utmost security by offering time-tested security solutions. To protect larger investments, regular third-party audits ensure updated security and extensive insurance coverage for additional protection.
The platform offers users a variety of services, including management, storage, and access control. The digital assets are protected by state-of-the-art technologies like secure key storage systems, quality assurance protocols, and multi-signature wallets. Moreover, by leveraging the platform’s analytics feature, customers can track their real-time portfolio performance.
Gemini Custody
Gemini Custody is a popular crypto custodial service and was the first to achieve both SOC-I and SOC-II regulatory compliance. It provides military-grade storage facilities for storing investors’ funds and utilizes cutting-edge technologies, such as multi-signature wallets and secure storage protocols, to protect their digital assets. The platform is committed to protecting its client’s assets through various methods, such as two-factor authentication and advanced encryption protocols.
The platform provides an intuitive user interface so that clients can easily manage their digital assets. It also ensures that all transactions follow regulatory standards. However, its fees can be slightly higher than those of other crypto custody services.
Anchorage Custody
Anchorage is one of the best crypto custodial services for institutions and individuals alike, bridging the gap between institutional-grade security and user-friendliness. The platform is well-known for its robust security measures and exclusive technology, making it a great option for investors looking for strong security to store their digital funds. To protect clients’ assets from theft or loss, cold storage, multi-factor authentication, insured custody services, and more are leveraged.
The platform allows both individual and institutional customers to store their digital assets safely without regarding their value or size and with a commitment to financial privacy and transparency. It also offers other features like access to analytics tools, automated compliance reporting, and more.
Coinbase Custody
Coinbase, a prominent cryptocurrency exchange, launched its own custody service in 2012 and developed it into one of the best in the industry. The platform leverages military-grade cold wallets and undergoes regular audits to ensure the best security for digital currencies and maintain industrial standards. It has dedicated on-chain addresses to ensure accessibility and advanced insurance policies that cover all aspects as a contingency in the event of a loss.
The platform has a simple user interface and is seamlessly integrated with the coinbase ecosystem. To avoid any single point of failure, the custody service is based on a multi-signature model, ensuring users have control over their funds. Its advanced security protocols and risk management systems reassure the clients that their funds will remain secure throughout their usage of the service.
Bakkt
Bakkt is one of the top crypto custodial services, offering individuals and institutions an institutional-grade experience. It is powered by state-of-the-art technology and ensures a high standard of security. The platform offers 24/7 customer support and real-time transaction monitoring, and to ensure transparency, it conducts annual audits by independent third parties.
The platform ensures user assets are protected from cybercrime or other activities through insurance coverage and a combination of online and offline storage methods, including air-gapped cold storage. Furthermore, it also regularly shifts between hot and cold storage to avoid risks.
Cobo Custody
Cobo is one of the best crypto custody services and the first omni-custody platform. The platform is SOC2 Type 1 and Type 2 licensed and ensures safe and efficient management of digital assets. It also ensures users’ assets are protected from hacks or cyber threats through distributed storage, institutional-grade infrastructure, and multi-level security protocols.
The platform also offers a full range of solutions, including MPC custody, custodial wallets, wallet-as-a-service, and more. Furthermore, it has special features like off-chain account channels for trading, multi-signature for fund transfers, and cold storage wallets.
Kingdom Trust
Kingdom Trust, founded in 2017, is one of the popular custodial services, offering solutions to both institutions and individuals. The company is regulated by the South Dakota Banking Division and offers many ways of managing and securing users’ assets. This includes holding private keys using the company’s digital tool, options for lending or staking digital assets through its custodial accounts, and cold storage through a partnership with Fidelity Digital Assets.
The platform extends its services to retirement funds and precious metals, diversifying its offering. It is also a highly secure custody solution, emphasizing transparency, accountability, and risk minimization. Furthermore, it offers a competitive fee schedule and, through analytics and insights, helps make well-informed decisions.
Bitcoin Suisse
Bitcoin Suisse is one of the top crypto custodial services that provides storage solutions for cryptocurrencies like Bitcoin and Ethereum. The service uses state-of-the-art infrastructure with multi-layer encryption and distributed ledger technology to ensure the highest security. It also includes 24/7 monitoring to detect suspicious activity, cold storage options to avoid hacking attempts, and advanced risk management techniques. Platform users can also access portfolio management solutions to optimize returns and minimize losses.
Conclusion
The expanding crypto landscape has highlighted the importance of secure and reliable custody services to safeguard digital assets. All the mentioned crypto custody services offer unique features and various benefits that are tailored to meet the diverse needs of both institutions and individuals. With the continuous evolution of the crypto, choosing the correct service that suits your needs is important to maximize the value of your assets.
