Choosing the right crypto custody solution requires careful evaluation of security measures, regulatory compliance, insurance coverage, supported assets, and cost structures.
As the crypto market matures, securing digital assets has become a top priority for investors and institutions. A crypto custody provider offers secure storage solutions, ensuring assets are protected from hacks, theft, and mismanagement. This article will explore critical considerations when choosing a provider.
Our Choice For The Best Crypto Custody Providers Of 2025
| Custody Provider | Fees Estimate | Regulatory Compliance | Insurance Cover | Location / Jurisdiction |
|---|---|---|---|---|
| Coinbase Custody | Setup – $10,000 0.50% Per Annum | Qualified Custodian, New York | $320 million | United States |
| BitGo | Tier based. 0.05% to 0.15% per month. | Qualified Custodian. South Dakota, NYDFS | $250 million | United States / Global |
| Sygnum | Tier based. 0.06%-0.04% per annum | Swiss FINMA, Singapore CMS | Yes. Amount or type not stated | Singapore, Switzerland |
| Gemini | 0.4% per annum. $125 withdrawal fee | Qualified Custodian, New York | $75 million cold storage | United States |
| Fidelity | 0.35% per annum. 0.1% fee for trades | Trust Charter from NYDFS | Not disclosed | United States |
Security Measures
Security is the foundation of any custody solution. Top crypto custody providers employ several common security measures to protect digital assets. These include:
Cold Storage: Assets are stored offline to minimize exposure to cyber threats. This method is widely used by providers like Coinbase Custody and Anchorage.
Multi-Signature Wallets: These require multiple approvals for transactions, enhancing security by preventing unauthorized access. Providers such as BitGo and Gemini use this technology.
Advanced Encryption: Strong encryption techniques are used to safeguard private keys and transaction data. This ensures that even if in the case of a data breached, it cannot be easily decoded.
Multi-Party Computation (MPC): This technology allows for secure transactions without revealing private keys. Providers like Zerocap and Fireblocks utilize MPC for enhanced security.
Regular Security Audits: Top providers conduct regular audits to identify vulnerabilities before they can be exploited by hackers.
Geographically Distributed Storage: Assets are stored across multiple secure locations to prevent a single point of failure.
Hardware Isolation: This is the practice of physically separating critical computing processes or sensitive data from potentially vulnerable or less secure systems. Some providers use hardware isolation to further protect assets from internal collusion and human error.
Regulatory Compliance
A reliable custodian must operate within a clear regulatory framework. Check whether the provider is licensed and follows Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. In regions like the United States, some institutions require qualified custodians to meet regulatory mandates. Compliance ensures accountability and legal protection in case of disputes.
Insurance Coverage
Crypto insurance is a critical but often overlooked factor. Some custodians provide coverage against theft, fraud, and operational failures. However, policy details vary—some cover only assets in cold storage, while others may exclude losses from cyberattacks. Understanding who underwrites the insurance and what specific risks are covered helps in assessing the reliability of a custody provider.
Custodians like iTrustCapital for example, don’t provide their own insurance coverage, instead they pass off the actual custody of their assets to 3rd party providers like BitGo and Fireblocks, and rely on those 3rd parties to have adequate coverage. Few, if any, providers will have insurance coverage for assets in ‘hot wallets’. For information on the insurance coverage of the top crypto custody providers, check here.
Asset Support
Not all custodians support every digital asset. Some focus on Bitcoin and Ethereum, while others offer broader coverage, including altcoins, NFTs, and tokenized assets. If you plan to stake crypto for passive income or participate in governance voting, confirm whether the custodian provides these services. Institutional investors may also require support for multi-asset portfolios and tokenized securities.
Fee Structures
Custody fees can vary widely depending on the provider and the services offered. Some charge a percentage-based fee. For example, 0.25%–1% annually for assets in storage, while others operate on a flat-rate subscription model, and some charge fees for deposits and withdrawals. In fact, some custody providers apply all of the above. Be mindful of hidden costs related to withdrawals, transactions, or additional security features. Comparing pricing models ensures you’re getting the best value for your custody needs. For more on the fee structures of major providers, check here.
Conclusion
Selecting the best crypto custody provider depends on your specific requirements. If security is your priority (and why wouldn’t it be), focus on providers with strong encryption and MPC solutions. If compliance and regulatory oversight matter most, choose a custodian with a banking license or government-backed approvals. Investors seeking diverse asset support should opt for custodians that accommodate multiple cryptocurrencies and staking services.
A well-vetted custodian not only safeguards assets but also provides peace of mind. By assessing security, regulation, insurance, asset coverage, and fees, investors can confidently select the best crypto custody solution for their needs.
