Institutional Investors Are Shunning Self-Custody Solutions - PwC Report
"Institutional investors in Asia are increasingly turning to third-party custody service providers to navigate the complexities of the $1.2 trillion digital asset market, pointing to the limitations of self-custodial solutions."
"There is a growing demand for institutional-grade custody solutions among family offices, high-net-worth individuals and external asset managers in safeguarding their digital asset holdings and exploring new investment opportunities, according to a joint report released by the digital asset wealth platform Aspen Digital and “big four” global accounting firm PwC."
“More institutional investors are recognizing the limitations of self-custodial solutions for their ongoing trading and operational needs. Instead, many institutions prefer third-party custody service providers,” Aspen Digital said in a statement.
"Over 120 custody providers, including Citigroup and Deutsche Bank, are now operating in the space as of April 2023, according to Blockdata."
"The global digital asset custody market was valued at $447.9 billion in 2022," highlighted the report.
"Safekeeping of assets and ensuring they are segregated from client service providers' own (house) assets is a fundamental need. This has applied for many years in the traditional securities industry," PwC digital assets and web3 co-lead Duncan Fitzgerald said in the statement.
"Last month, another PwC survey found more hedge funds investing in crypto, despite recent volatility," reported The Block.
"The report comes at a time of increased optimism surrounding the prospect of a spot bitcoin ETF in the United States, following the renewed race kicked off by BlackRock on June 15, with Coinbase listed as the custodian."