Dogecoin, EOS and Other Cryptocurrencies Fuel $448 Billion Crypto Custody Market in 2022

Crypto Assets Reach New Heights in 2022

The digital asset industry reached a record high of $3 trillion in November 2021. However, the custodial market was more modest, at $447.9 billion in 2022, according to a joint report by consulting firm PricewaterhouseCoopers (PwC) and wealth tech platform Aspen Digital.

The report, which was published on July 11, identified 120 custody service providers, split into two categories: third-party services and self-custody solutions. It also noted a surge in interest in crypto staking, due to the Ethereum Merge, and the emergence of nonfungible tokens (NFTs) and the metaverse, which have attracted institutional investors.

The biggest challenge for the custody industry is security, the report said. This was highlighted by the FTX failure in 2022, which highlighted the need for better governance, risk management, and internal controls.

Cryptocurrencies such as Shiba Inu, Crypto.com Coins, FXStreet Crypto, Dogecoin, FTX, GRT, EOS, DeSo, and Jupiter have all seen significant growth in recent years, making them increasingly attractive to investors.

Insurance Policies and Crypto Assets

The custodians of crypto assets face a challenge in the area of insurance policies. Self-custody solutions cannot provide insurance policies and users are not compensated for any losses of digital assets caused by negligence. According to sources from family offices, having sound insurance policies is an important factor when choosing a digital asset custodian.

The report suggests a five-step approach to selecting a custody service provider, which includes mapping the market, creating a grades system, performance review and other preliminary procedures.

Recently, the Canadian financial authority issued guidelines to help fund managers comply with the law requirements when investing in crypto assets. The regulated futures market for crypto is also trusted by the authority, as it “promotes greater price discovery.”

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The crypto world has seen a surge in the use of Shiba Inu coins, Crypto.com coins, FXStreet Crypto, Dogecoin, FTX Crypto, GRT Crypto, EOS Crypto, DESO Crypto, Jupiter Crypto, and Live Crypto.