Crypto Staking and NFTs Drive Interest in Custody Market

Digital Asset Custody Market Shows Growth Despite Security Challenges

The digital asset custody market reached $447.9 billion in 2022, while the industry peaked at over $3 trillion in November 2021. A joint report by PwC and Aspen Digital highlights the rise of interest in crypto staking and the emergence of NFTs as major developments. Security remains a key challenge for custodians, with institutions increasingly opting for self-custody solutions or reputable custodians. Insurance policies are also crucial for investors, as self-custody solutions lack coverage for asset loss due to negligence. The report recommends a five-step approach for selecting custody service providers. Canada's financial authority has issued guidance on crypto asset compliance.