PricewaterhouseCoopers (PwC) and wealth technology platform Aspen Digital released a joint report on the state of digital asset custody on July 11.
According to the report, encrypted assets will peak in November 2021, with a DOGE -0.33%-rose-about-115-last-week-and-its-current-market-value-has-exceeded-17-billion/">market value of more than $3 trillion. However, the custody business of the crypto market remains at $447.9 billion in 2022.
As of April 2023, the number of hosting service providers is 120, which are divided into two categories: third-party service providers and self-hosting solutions. Including the ETH 0.37%-may-drop-slightly-before-and-after-merger-then-rise-due-to-deflationary-trend/">rise of interest in cryptocurrency staking due to the merger of Ethereum, and the emergence of NFTs and metaverses, attracting institutional investors.
According to the report, the main challenge facing the custody industry is security due to the lack of proper governance, risk management and internal controls. Another challenge for custodians lies in the area of insurance policies.
Self-custody solutions do not provide insurance services, and users will not be compensated for digital asset losses caused by negligence.
According to family office sources, a sound insurance policy is an important criterion for selecting a digital asset custody institution.
