Digital Asset Custody Market (2025 - 2033) Size, Share & Trends Analysis Report By Type of Custody, By Asset Type, By Service Type, By Deployment, By End-use, By Region, And Segment Forecasts

Digital Asset Custody Market Summary

The global digital asset custody market size was estimated at USD 683.38 billion in 2024, and is projected to reach USD 4,378.84 billion by 2033, growing at a CAGR of 23.6% from 2025 to 2033. The digital asset custody market is gaining strong momentum, driven by the growing institutional adoption of cryptocurrencies and tokenized assets.

As hedge funds, asset managers, and corporate treasuries increasingly allocate capital to digital assets, the need for secure and compliant storage solutions has accelerated. Rising interest in spot Bitcoin ETFs and the expansion of tokenized securities further highlight the importance of reliable custodians. In addition, the entry of traditional banks and financial institutions has legitimized the market, building confidence among institutional investors.

Advancements in security infrastructure are shaping the evolution of digital asset custody. Multi-party computation (MPC), hardware security modules (HSMs), and cold-hot wallet integration are being widely deployed to enhance protection against cyberattacks and theft. Custodians are also leveraging blockchain technology for transparency, real-time auditing, and improved settlement efficiency. Furthermore, the integration of tokenization platforms and interoperability solutions is enabling custodians to support a broader range of assets, from cryptocurrencies to real-world asset tokens and central bank digital currencies (CBDCs).

The market has seen significant investment inflows, both from venture capital firms backing crypto-native custodians and from established banks building digital custody infrastructure. Companies such as Fireblocks, Anchorage Digital, and BitGo have secured large funding rounds to scale custody operations, while institutions such as BNY Mellon, Fidelity, and State Street are allocating resources to expand regulated custody services. Strategic partnerships and joint ventures, such as Nomura’s Komainu in Japan and Standard Chartered’s Zodia Custody in Europe, reflect the rising capital commitment toward building trusted custody frameworks globally.

The regulatory environment is emerging as a critical factor shaping the digital asset custody market. In the U.S., the SEC and OCC are defining requirements for custodians, while in Europe, the Markets in Crypto-Assets (MiCA) regulation establishes harmonized rules for service providers. Asia Pacific jurisdictions such as Japan have introduced clear frameworks, whereas China restricts crypto custody and advances CBDC-focused models. This global regulatory momentum is fostering greater transparency and compliance, creating conditions for large-scale institutional participation in the custody market.

Despite its growth trajectory, the market faces several challenges. Regulatory uncertainty in certain jurisdictions creates hesitation among institutional investors and custodians alike. Cybersecurity risks remain a persistent concern and threats. In addition, the lack of uniform global standards for custody practices and auditing can hinder cross-border expansion.

Type Of Custody Insights

The hot wallet custody segment accounted for the largest share of 75.2% in 2024. The need for speed, liquidity, and accessibility in digital asset transactions drives the growth of hot wallet custody. Institutional investors, exchanges, and payment providers require instant access to funds to support high-frequency trading, settlement, and cross-border payments. Hot wallets enable seamless integration with decentralized finance (DeFi) platforms, tokenized securities, and payment networks, making them highly attractive for clients who prioritize operational efficiency.

The cold wallet custody segment is expected to grow at the fastest CAGR during the forecast period. The segment is expanding rapidly due to the heightened demand for security and regulatory compliance in institutional-grade asset management. By keeping private keys completely offline, cold wallets minimize exposure to cyberattacks, hacking, and insider threats, making them the preferred solution for long-term storage of high-value assets. Institutional investors, custodians, and regulated financial institutions increasingly favor cold storage to meet stringent compliance requirements and insurance mandates.

Asset Type Insights

The cryptocurrencies segment held the dominating share in the market in 2024. The expansion of cryptocurrency custody is being fueled by rising institutional participation in Bitcoin, Ethereum, and other leading digital currencies. The approval of spot Bitcoin ETFs, growing acceptance of crypto as an alternative asset class, and increasing adoption for cross-border payments and treasury diversification are major growth drivers. Custodians are also enhancing infrastructure with multi-signature wallets, insurance coverage, and regulatory compliance, making cryptocurrencies more accessible and secure for institutional investors.

The tokenized assets segment is expected to grow at the fastest CAGR during the forecast period. The custody of tokenized assets is gaining traction as financial institutions, asset managers, and governments explore the tokenization of real-world assets (RWAs) such as equities, bonds, real estate, and commodities. Tokenization creates liquidity, fractional ownership, and broader investor access to traditionally illiquid markets, fueling demand for secure storage and compliance-ready custody services.

Service Type Insights

The custody services segment dominated the market in 2024. The growth of custody services is driven by increasing institutional participation in digital assets and the rising demand for secure storage solutions. Investors such as hedge funds, asset managers, and corporates require custodians that can provide insured, compliant, and technologically advanced solutions to safeguard digital assets. Regulatory frameworks across regions, including MiCA in Europe and guidelines from the SEC and OCC in the U.S., have reinforced the importance of regulated custody, boosting institutional trust.

The trading services segment is projected to grow at a significant CAGR over the forecast period. Trading services within the custody market are expanding due to the growing need for integrated platforms that combine secure storage with liquidity and execution capabilities. Institutional investors increasingly prefer custodians that provide seamless access to exchanges, OTC desks, and DeFi platforms, allowing them to trade directly from custody accounts. This reduces counterparty risk while improving operational efficiency and settlement speed.

Deployment Insights

The cloud-based segment dominated the market in 2024. The growth of cloud-based custody solutions is driven by their scalability, cost-efficiency, and ability to support rapid deployment across global markets. Financial institutions and custodians favor cloud infrastructure because it enables seamless integration with digital trading platforms, tokenization services, and compliance systems. Enhanced security features offered by leading cloud providers, such as advanced encryption, multi-factor authentication, and real-time monitoring, further build institutional confidence.

The on-premise segment is expected to grow at a significant CAGR over the forecast period. On-premise custody is gaining traction among institutions that prioritize maximum control, security, and compliance in managing digital assets. Large banks, governments, and highly regulated financial organizations often prefer on-premise deployment to ensure sensitive data and private keys remain entirely within their internal infrastructure.

End Use Insights

The institutional investors segment dominated the market in 2024. Institutional investors are fueling the growth of the digital asset custody market as they increasingly recognize cryptocurrencies and tokenized assets as part of diversified investment portfolios. The approval of spot Bitcoin ETFs, rising adoption of tokenized bonds, and the growing interest in real-world asset tokenization are pushing institutions toward regulated and secure custody solutions.

The hedge funds segment is projected to grow at a significant CAGR over the forecast period. Hedge funds are driving custody market expansion due to their active trading strategies and appetite for high-growth alternative asset classes. With increasing exposure to cryptocurrencies, DeFi products, and tokenized assets, hedge funds require custodians that offer both security and liquidity management. The ability to trade directly from custody accounts, access OTC desks, and integrate with execution platforms is particularly attractive for hedge funds seeking operational efficiency.

Regional Insights

North America digital asset custody market accounted for a 39.5% share of the overall market in 2024. The growth in the region is driven by strong institutional adoption, regulatory clarity in certain states, and the presence of established custodians such as Coinbase Custody, Anchorage Digital, and Fidelity Digital Assets. The region benefits from a robust financial ecosystem, with traditional banks increasingly entering the space to offer compliant and insured custody solutions.

U.S. Digital Asset Custody Market Trends

The U.S. digital asset custody market held a dominant position in 2024. The U.S. represents North America’s largest share of digital asset custody, underpinned by a rapidly evolving regulatory environment and a strong base of technology-driven custodians. Major players such as BNY Mellon, State Street Digital, and Gemini Trust have expanded their custody services, aligning with increasing institutional demand.

Europe Digital Asset Custody Market Trends

The European digital asset custody market was identified as a lucrative region in 2024. It is expanding rapidly as institutional interest rises alongside the implementation of the Markets in Crypto-Assets (MiCA) regulation. The region is witnessing increased participation from both fintech custodians and large banks, including Standard Chartered’s Zodia Custody and Deutsche Börse’s Clearstream, which are strengthening Europe’s infrastructure for regulated crypto storage.

The UK digital asset custody industry is expected to grow rapidly in the coming years. The growth in the region is supported by its reputation as a global financial hub and its progressive regulatory stance on digital finance. Custodians such as Copper and Zodia Custody have established strong operations in London, serving both domestic and international clients.

Asia Pacific Digital Asset Custody Market Trends

The Asia Pacific digital asset custody market is expected to grow at the fastest CAGR of 24.8% over the forecast period. The growth in the region is fueled by rapid technological adoption, strong retail participation, and increasing institutional demand. Markets such as Japan and China are driving the region’s trajectory, though regulatory approaches vary significantly.

The Japan digital asset custody industry is expected to grow rapidly in the coming years. Japan has emerged as one of the most progressive markets for digital asset custody, supported by a clear regulatory structure under the Financial Services Agency (FSA). The country has mandated strict security and segregation requirements for custodians, ensuring higher levels of investor protection.

Key Digital Asset Custody Company Insights

Some of the key companies in the digital asset custody market include Coinbase, BitGo Technologies, LLC, FMR LLC, Anchorage Digital, Ledger Enterprise, and others. Organizations are focusing on increasing the customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies.

• Coinbase Global, Inc. is a cryptocurrency exchange and a U.S.-based digital asset custodian. Coinbase provides a broad suite of products for retail and institutional clients, including the Coinbase Wallet and Coinbase Custody, which offer secure storage solutions with insured cold storage accounts for cryptocurrencies. The company emphasizes regulatory compliance, security, and ease of use, positioning itself as a trusted platform within the crypto ecosystem.

• BitGo Technologies is a digital asset custody and infrastructure service that serves institutional clients. As an independent custodian, BitGo secures over USD 90 billion in digital assets on its platform and provides qualified, regulated custody for more than 1,300 tokens across a diverse range of blockchains. The company pioneered multisignature wallet technology and later advanced threshold signature schemes (TSS), ensuring battle-tested security in both hot and cold wallet configurations.

Recent Developments

• In September 2025, Ripple entered into a partnership with BBVA Spain to offer digital asset custody technology for the bank’s cryptocurrency trading service, targeting retail customers. Through this agreement, BBVA is adopting Ripple Custody, an institutional-grade self-custody platform created by Ripple, to offer secure storage and management for Bitcoin and Ether transactions. The integration of Ripple’s technology supports BBVA’s crypto trading service, which was made available to retail customers in Spain following regulatory approval under the European Union’s Markets in Crypto-Assets (MiCA) regulation.  

• In January 2024, Standard Chartered set up a new entity in Luxembourg to offer digital asset custody services to institutional clients across the European Union. By choosing Luxembourg as its regulatory hub, the bank gains entry to the EU market under the framework of the Markets in Crypto-Assets (MiCA) code, while addressing rising demand for secure crypto custody solutions in the region. This initiative forms a core element of the global digital asset strategy of Standard Chartered, complementing similar custody launches in markets such as the UAE.

Digital Asset Custody Market Report Scope

Global Digital Asset Custody Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global digital asset custody market report based on type of custody, asset type, service type, deployment, end use, and region:

• Type of Custody Outlook (Revenue, USD Billion, 2021 - 2033)

  • Hot Wallet Custody

  • Cold Wallet Custody

• Asset Type Outlook (Revenue, USD Billion, 2021 - 2033)

  • Cryptocurrencies

  • Digital Securities

  • Tokenized Assets

  • Non-Fungible Tokens (NFTs)

• Service Type Outlook (Revenue, USD Billion, 2021 - 2033)

  • Custody Services

  • Trading Services

  • Reporting & Compliance Services

  • Risk & Security Management

• Deployment Outlook (Revenue, USD Billion, 2021 - 2033)

  • On-Premise

  • Cloud-based

• End Use Outlook (Revenue, USD Billion, 2021 - 2033)

  • Institutional Investors

  • Hedge Funds

  • Asset Managers

  • Banks

  • Family Offices

  • Exchanges & Trading Platforms

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa