Recent research highlights the pivotal role traditional custodians play in driving cryptocurrency adoption among asset managers and institutional investors. A study conducted by Swiss Securities Exchange (SIX) surveyed 300 investment managers, revealing that 55% prefer trading digital assets when traditional custodians are involved. Globally, approximately $223 billion in digital assets are currently under custody.
Key Findings:
- Institutional Trust: Traditional custodians bridge the trust gap for institutional entrants into crypto markets.
- Market Impact: SIX's Digital Exchange (SDX) launched an institutional-grade custody solution in October 2022, catering to Web3 and digital asset investors.
- Consumer Protection: Current crypto custody frameworks often lack the robust safeguards found in traditional capital markets.
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FAQ Section
Q1: Why do asset managers prefer traditional custodians for crypto?
A1: Traditional custodians offer regulatory compliance, institutional-grade security, and familiarity—reducing perceived risks associated with digital assets.
Q2: How much in digital assets is currently under custody?
A2: An estimated $223 billion globally, with growth driven by institutional demand.
Q3: What distinguishes SIX’s crypto custody offering?
A3: SDX provides a regulated, end-to-end solution tailored for institutional investors, including settlement and asset servicing.
Q4: Are crypto custodians as secure as traditional ones?
A4: Not yet. Crypto custodians often have limited consumer protections compared to traditional markets, though improvements are ongoing.
Keywords:
- Traditional Custodians
- Crypto Adoption
- Institutional Investors
- Digital Asset Security
- SIX Digital Exchange
- Asset Management
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