출처: Block Media
Global Custody Market: A Pillar of Institutional Finance in the Digital Era
The global custody market is undergoing a transformational growth phase, projected to expand from $447.9 billion in 2022 to $683 billion by 2024—an increase of over 50%. Having evolved well beyond its original function as a secure storage service, custody now serves as critical infrastructure enabling institutional adoption and participation in the broader financial ecosystem.
Custody service providers are categorized into three distinct models: traditional custodians focusing on regulation and trust, hybrid firms offering a diversified suite of financial services, and technology-driven providers delivering custody solutions as part of an integrated infrastructure. Jurisdictions like Singapore, Hong Kong, Japan, and South Korea have customized custody approaches tailored to their regulatory landscapes, further underpinning the sector’s global expansion.
The future trajectory of custody hinges on the twin pillars of asset base growth and the ability to integrate additional services that expand its functionality into broader financial infrastructure. Success in this competitive landscape will also depend on regulatory alignment and adaptability to local market nuances, both of which are increasingly vital for global players and new entrants alike.
Why Custody Is Central to Institutional Growth
The custody industry’s rapid acceleration stems from its critical role in meeting institutional demand within regulated markets. Initially limited to securing virtual assets for crypto exchanges, the custody sector has diversified significantly with increased interest from institutional investors. The adoption of crypto exchange-traded funds (ETFs) and demand from Digital Asset Treasury (DAT) firms are key drivers of this growth.
Recent data reflects this surge: the global custody market grew by over 50% within just two years, with projections suggesting annual growth rates of 17–25% for custody solutions focused on digital assets. This upward trajectory is fuelled by maturing regulatory frameworks and institutional capital inflows.
As the scale of assets under custody grows, institutional players increasingly seek reliable and bank-grade secure custodial services. Simultaneously, countries are implementing localized strategies to meet the specific needs of their financial ecosystems—signaling that custody has evolved into a foundational pillar of institutional finance.
The Origins of Modern Custody: Crisis Breeds Innovation
The custody industry’s rise can be traced back to high-profile crises like the 2014 Mt. Gox hack, during which approximately 850,000 Bitcoin (BTC) were stolen. This catastrophic event underscored the urgent need for institutional-grade solutions to safeguard digital assets.
In response, regulators in key jurisdictions introduced custody frameworks that mirrored those of traditional finance. For example, the U.S. established clear custody guidelines to ensure robust standards for the safeguarding of client assets. These regulatory efforts paved the way for today’s custody market to thrive within a secure, compliant foundation.
Three Core Custody Models: Diversified Strategies for Success
The competitive landscape for custody services can be divided into three primary models, each tailored to meet the varied demands of institutional clients.
1. Traditional Custody Providers: Proven Trust and Regulatory Leadership
Traditional custodians focus on secure asset storage for institutional investors, leveraging decades of operational trust and regulatory credibility. A prominent example is Coinbase Custody, a key player in the U.S. market with a dominant role in the crypto ETF ecosystem. By 2025, Coinbase Custody managed nine out of eleven SEC-approved Bitcoin spot ETFs and eight of nine Ethereum ETFs.
Regulatory milestones, such as its Limited Purpose Trust Charter granted by New York’s Department of Financial Services in 2018, strengthened Coinbase’s position as a Qualified Custodian under SEC guidelines. The firm’s exceptional regulatory track record ensures its continued competitiveness, even against technology-driven challengers.
2. Hybrid Custody: Expanding Beyond Storage
Hybrid custodians like BitGo combine secure storage with additional value-added services, including staking, over-the-counter (OTC) trading, lending, and tokenization of real-world assets. Through expanded offerings, hybrid custodians meet broader institutional needs and capture diverse client bases across global markets.
BitGo, for example, has developed a comprehensive solution ecosystem encompassing custodial wallets, financial API integrations, and staking infrastructure. Its strategic expansion into regulatory-friendly hubs like Singapore, Hong Kong, and Abu Dhabi underscores its ability to scale quickly while maintaining local compliance. Hybrid custodians rely heavily on service diversification to generate growth and establish a competitive foothold.
3. Technology-Driven Custody: Empowering Institutions Through Infrastructure
Technology-focused firms, such as Fireblocks, differentiate by offering custody infrastructure—tools and platforms enabling other institutions to manage their own assets. These firms cater primarily to banks, fintech companies, and crypto exchanges seeking seamless custody solutions.
Fireblocks exemplifies this approach through partnerships with institutions like BNY Mellon and Crypto.com, managing $200 billion in assets on its platform by 2025. Regulatory approval as a Limited Purpose Trust by the New York Department of Financial Services in 2024 further bolstered Fireblocks’ market credibility. Rather than acting as asset custodians themselves, these providers equip clients with the technological tools to build customized custody systems.
Regional Custody Strategies: Diverse Approaches to Market Development
Different nations have adopted tailored approaches to custody, fostering diverse market dynamics across countries. Regulatory requirements and financial landscapes play a pivotal role in shaping these localized frameworks.
Singapore: A High-Compliance Hub
Under the Financial Services and Market Act (FSMA) introduced in June 2023, the Monetary Authority of Singapore (MAS) extended custody regulations to overseas-facing providers. Only major banks and top-tier institutions now qualify for custody operations—a framework that promotes stability and elevates compliance standards.
Hong Kong: Integrated Ecosystems Through Regulation and Banking
Hong Kong’s Securities and Futures Commission (SFC) introduced a VATP regulatory regime in 2023, emphasizing integration between exchanges and custodial services. Firms like OSL and HashKey embody this model through diverse offerings that combine custody, OTC trading, and fiat-to-crypto services in collaboration with banks like Standard Chartered.
Japan: A Fortress of Asset Protection
Japan enforces stringent custodial regulations under its Financial Services Agency (FSA). Firms must store over 95% of client assets in cold wallets, while any hot wallet holdings require collateral matching their value. This secure yet restrictive environment favors established financial institutions like MUFG, leaving less room for Web3-native startups.
South Korea: Cultivating Institutional Demand
The custody ecosystem in South Korea operates under the Special Financial Transaction Act, with offerings from traditional banks like KODA and newer players focused on high-security differentiation. Corporate demand for crypto custodial services is set to grow as South Korean authorities introduce clearer frameworks for institutional crypto trading.
Future Prospects: Challenges and Opportunities
As the custody market accelerates, two key strategies are emerging: aiming to dominate early and establishing first-mover advantages, as seen with Coinbase Custody, or diversifying into a broader financial services ecosystem, exemplified by BitGo.
To succeed, custody providers must localize their strategies, prioritizing regulatory compliance and forming partnerships with domestic institutions. The ability to navigate regional complexities—from Hong Kong’s collaborative banking model to Japan’s security-heavy frameworks—will separate leaders from laggards.
For new entrants, rapid expansion without regulatory alignment could spell failure. Instead, focusing on tailored solutions that align with local compliance norms and institutional needs will provide a competitive edge, enabling players to capitalize on the custody market’s immense potential.
This analysis draws on insights from Tiger Research, a leading Web3-focused research institution, in partnership with BlockMedia. For the full detailed report, visit Tiger Research’s official website.
