But among the many custody platforms, which ones are trustworthy for high-net-worth investors? What successful application cases can we learn from?
In this article, Portal Labs will list the top 10 influential platforms in the crypto asset custody industry to help you make wise choices in a complex market.
What is Crypto Asset Custody?
Crypto asset custody, simply put, is the professional management, storage, and value-added service for crypto assets. For high-net-worth investors, this is not just an asset protection tool, but a core service that allows them to focus on strategic investments and optimize asset allocation.
Services provided by custody platforms include:
Cold wallet storage: Ensuring high asset security;
Compliance services: Ensuring assets meet international financial regulatory standards;
Liquidity management: Ensuring assets can be flexibly converted when needed;
Tax optimization: Automatically generating tax reports to reduce tax burden.
Compared to self-storage using cold wallets, the advantages of third-party custody are:
Security
Although cold wallets can technically prevent online hacker attacks, the security provided by third-party custody is more comprehensive. Through professional custody institutions, assets are not only stored in cold wallets but also enjoy multi-signature technology and insurance protection. This way, investors can avoid hacker intrusions and receive insurance compensation in extreme situations.
Compliance and Transparency
High-net-worth investors often face global compliance requirements. Custody platforms ensure investors' assets comply with financial regulations through measures like KYC (Know Your Customer) and AML (Anti-Money Laundering). Additionally, regular audit reports and transparent asset management allow investors to understand their asset status at any time, ensuring compliance and transparency.
Liquidity
Third-party custody platforms provide more convenient asset management. Through these platforms, investors can quickly adjust their investment portfolios or liquidate assets without worrying about cold wallet access issues. Custody platforms typically collaborate with multiple exchanges and financial institutions to ensure asset liquidity and execute trades quickly when needed.
Tax Optimization
Custody platforms usually offer automated tax report generation services, helping investors avoid tax risks and reduce tax burdens. This allows investors to ensure asset compliance and reasonably plan tax matters globally, avoiding potential risks from personal management.
Management Burden
For high-net-worth investors, managing crypto assets involves significant complexity and risk. The 24/7 customer support and account recovery functions provided by custody platforms ensure investors can get help at any time, avoiding asset losses due to operational errors or technical issues.
Finally, custody platforms typically support management of multiple crypto assets, including Bit, Ethereum, DeFi tokens, and Non-Fungible Tokens. This allows high-net-worth investors to manage diversified assets on a single platform, improving management efficiency.
Mainstream Crypto Custody Platforms
Now, let's review the top 10 most influential crypto asset custody platforms and their unique advantages.
[The rest of the translation follows the same professional and accurate approach, maintaining the specified translations for specific terms.]Service Highlights: Luno provides crypto asset custody and trading services, supporting various mainstream digital currencies, ensuring asset security and liquidity.
Service Targets: Luno's customers mainly include international investors and crypto exchanges.
Applicable Customers: International investors, crypto exchanges, small crypto funds.
Luno provides crypto asset services in multiple global markets, with a particularly high user base in emerging markets.
Bitstamp Custody
Establishment Year: 2011
Service Highlights: Bitstamp Custody offers multi-signature and cold wallet custody services, focusing on providing high-security storage solutions for crypto assets for institutions and large-scale investors.
Service Targets: Bitstamp Custody provides custody services for institutional investors, large funds, and crypto exchanges, with customers including CoinShares and Xapo.
Applicable Customers: Primarily serving large institutional investors, crypto exchanges, and investment funds, especially those requiring high security and compliance guarantees.
Bitstamp Custody, leveraging Bitstamp's brand and deep background in global financial markets, brings professional services and extremely high credibility to the crypto asset custody field. Its custody services are widely favored by institutions and funds, becoming an important choice for institutional-level investors.
