Best Cryptocurrency Custody Software
Cryptocurrency custody software is used to store and secure cryptocurrency assets. These tools rely on private key encryption to restrict access to digital currency assets and ensure their privacy while in long-term storage. Many cryptocurrency custody solutions also facilitate the buying and trading of cryptocurrencies for individuals or institutions. Furthermore, these tools can simplify and centralize cryptocurrency-related transactions and operational processes. Businesses use them to simplify management and storage of assets while ensuring their security and privacy.
Cryptocurrency custody solutions are related to cryptocurrency wallets in that they are used to store cryptocurrency, and cryptocurrency exchanges as they can be used to purchase and trade digital currency assets. However, custody solutions differ in that they centralize the transaction and storage processes while facilitating storage to an institutional-level scale.
To qualify for inclusion in the Cryptocurrency Custody category, a product must:
Best Cryptocurrency Custody Software At A Glance
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- Overview
- Pros and Cons
- Seller Details
Fireblocks is a digital asset custody, transfer and settlement platform. MPC-CMP wallet technology. 24/7 access.
- Financial Services
- 56% Small-Business
- 36% Mid-Market
34,465 Twitter followers
- Overview
- Pros and Cons
- Seller Details
Zengo is a type of self-custodial cryptocurrency wallet solution designed to help users securely manage and store their digital assets without the vulnerabilities associated with traditional seed phra
- Financial Services
- Accounting
- 95% Small-Business
- 5% Mid-Market
44,140 Twitter followers
- Overview
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- 93% Small-Business
- 7% Mid-Market
14,560,212 Twitter followers
- Overview
- Pros and Cons
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Dfns is a leading Wallets-as-a-Service (WaaS) platform that helps fintechs, institutions, and enterprises worldwide simplify digital asset management and securely bring users into crypto. Our secure w
- Financial Services
- 86% Small-Business
- 14% Mid-Market
2,677 Twitter followers
- Overview
- Seller Details
Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin.
- 80% Small-Business
- 20% Enterprise
6,504,960 Twitter followers
- Overview
- Seller Details
Securing digital assets for the financial industry. Enterprise-grade crypto-asset safeguarding and transaction solution utilizing end-to-end hardware, firmware, and software security to achieve govern
- Financial Services
- 62% Small-Business
- 31% Mid-Market
663,292 Twitter followers
- Overview
- Seller Details
CoinRabbit is an instant cryptocurrency lending service without credit checks, monthly payments, and maximum loan sizes. It has one of the smallest APR rates (5%) and a special monitoring system of ev
- Financial Services
- 74% Small-Business
- 13% Enterprise
8,907 Twitter followers
- Overview
- Pros and Cons
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BitGo is the leader in custody and security solutions. Founded in 2013, BitGo pioneered the multi-signature wallet and is the first digital asset company to focus exclusively on serving institutional
- 63% Small-Business
- 19% Enterprise
65,965 Twitter followers
- Overview
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- 83% Small-Business
- 17% Mid-Market
6,504,960 Twitter followers
- Overview
- Seller Details
Cobo Custody is compliant, military-grade institutional crypto custody that balances security and efficiency. With industry leading security and technology such as 3-tier private key storage architect
- 50% Small-Business
- 33% Mid-Market
27,733 Twitter followers
- Overview
- Seller Details
NodeVenture is the easiest and most secure crypto wallet from Austria. We store cryptocurrencies by default offline in our high security digital vault. Our patented air-wall technology (awt) allows us
- 75% Small-Business
- 25% Mid-Market
- Overview
- Seller Details
3Commas is a sophisticated crypto trading automation platform designed to assist traders of all experience levels in maximizing efficiency, minimizing risk, and enhancing profitability across various
- 100% Small-Business
- Overview
- Seller Details
We envision a future where all types of assets are issued natively on blockchains or represented in tokenized format. It all begins with a full-service, enterprise-grade platform for securing, trading
- 67% Small-Business
- 33% Enterprise
81,143 Twitter followers
- Overview
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AmbiVault is hyper-secure storage that helps you to manage digital assets and protect them from any tampering or external theft. AmbiVault is based on the smart contracts in the Ethereum blockchain t
- 50% Enterprise
- 50% Small-Business
- Overview
- Seller Details
Koinly is a cryptocurrency calculator trusted by crypto investors in over 20 countries. Koinly integrates with 700+ exchanges, blockchains, and wallets to give investors an easy and accurate way to tr
- 100% Small-Business
- Overview
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Multi-asset| Military-grade | Insured
- 100% Mid-Market
- Overview
- Seller Details
Atato is a fully licensed and compliant digital asset custody solution secured by multi-party computation. Atato enables web3 SMEs , market makers, institutions, and more safely store and manage any o
- 100% Mid-Market
2,978 Twitter followers
- Overview
- Seller Details
A home for your keys. We're a distributed team building the friendliest, most secure key system on the planet.
- 100% Small-Business
- Overview
- Seller Details
Chainlink's decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain.
- 50% Enterprise
- 50% Small-Business
1,329,579 Twitter followers
- Overview
- Seller Details
The CryptoStorage AG offers a proprietary solution to secure private key of qualified and institutional investors, both physically and digitally on high-quality hardware security modules with detailed
- 100% Mid-Market
6,386 Twitter followers
- Overview
- Seller Details
Advanced Aggregation, Liquidity Management & Distribution Platform Crypto Switch™ is the proven digital asset institutional solution for consuming and distributing Crypto liquidity. The platfor
- 100% Enterprise
- Overview
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Our Crypto Portfolio Management System has been designed for Crypto Funds or Crypto Asset Managers to help them achieve optimal portfolio management and operational efficiency. Our product offering i
- 100% Enterprise
565 Twitter followers
- Overview
- Seller Details
itBit is a Leading Provider of Crypto Asset Custodial Services
- 100% Small-Business
7,749 Twitter followers
- Overview
- Seller Details
Kingdom Trust provides a highly secure, qualified custody service designed for financial institutions, hedge funds, investment sponsors, RIAs and family offices.
- 100% Small-Business
- Overview
- Pros and Cons
- Seller Details
Founded by Mahin Gupta and a team of expert engineers, Liminal offers optimized solutions for processing and securing digital assets on an institutional level. Originating from the success of Zebpay,
- 100% Small-Business
1,661 Twitter followers
- Overview
- Seller Details
Orbitos is an all-in-one crypto custody solution designed to make it easier for individuals and institutions to securely store their cryptocurrency assets. The platform was developed to provide finan
- 100% Mid-Market
- Overview
- Seller Details
Breather is the leading provider of space-as-a-service, with a growing network of private workspaces built for productivity. Breather enables businesses to access workspace for hours to years, with hu
9,847 Twitter followers
- Overview
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QEDIT provides an enterprise solution for preserving privacy on the Blockchain. Using QEDIT you can transfer ownership of Blockchain assets without revealing the confidential transaction details while
- 100% Small-Business
1,244 Twitter followers
- Overview
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Swiss Crypto Vault developed a proprietary hyper secure cold storage concept. It applies the highest standards of cryptographic, IT and physical security as well as multi-party segregation and multi-s
- 100% Small-Business
- Overview
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Insured & Secured Digital Assets
- 100% Small-Business
- Overview
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View the leaderboard of top traders backed by real trading history. Starting with a minimum of $25, copy the top trader of your choice. Funds remain in your account - no one has access to your funds,
- Overview
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Anchorage Digital is a crypto platform that enables institutions to participate in digital assets through custody, staking, trading, governance, and settlement. With the only federally chartered crypt
- 100% Small-Business
- Overview
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Multi-asset retirement accounts the allow you to hold traditional, digital and alternative assets in the same account. Bitcoin, Stocks, ETFs, Gold, Real Estate, Bonds, Private, Equity, Promissory N
- Overview
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Composer allows you to build and backtest trading algorithms with AI, then execute them all in one platform.
- Overview
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Our Enclave Wallet was designed at the outset for the rigors of institutional custody. That's what allows DACC to offer industry-leading token support while prioritizing security.
- Overview
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Explace.io is a simple, secure cryptocurrency exchange platform supporting over 2000+ digital assets. It offers automated swaps with competitive rates, low fees, and high limits, enabling fast, reliab
- Overview
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FX-Speed is a provider focusing on innovative financial transaction software. Our team is experienced and has many years of practical experience in Foreign exchange trading system, blockchain applicat
- Overview
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GK8, a Galaxy Company, offers both traditional and crypto-native institutions an end-to-end platform for managing blockchain-based assets. The company developed the world’s first true Cold Vault that
1,236 Twitter followers
- Overview
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inabit is a secure self-custody crypto management platform built for businesses and enterprises that need speed, usability, and full control of their digital assets. The platform supports wallet manag
- Overview
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eXFI offers the decentrlized and scalable infrastructure that, enables traders to remain in full contorl of the their keys. It combines the CEX security standards with all the benefits of the DEX.
- Overview
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Moonitor is an elegant and user-friendly Cryptocurrency App Tracker compatible with MacOS, Windows and Linux.
- Overview
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Orqestra allows businesses to automatically convert a portion of their cash flow into bitcoin. You can transfer the bitcoin to an external wallet or convert back your funds to USD at any time. Orqest
- Overview
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Make your crypto assets work for you. The highest crypto deposit rates on the market. Earn Up to 10.37% annually with the Estonia based Q DAO DeFi Platform.
- Overview
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Global leading end-to-end digital asset infrastructure for financial institutions. Multi-assets, multi-blockchains. In Switzerland, more than 1 bank out of 2 runs Taurus infrastructure. We offer a sui
Learn More About Cryptocurrency Custody Software
What is Cryptocurrency Custody Software?
Cryptocurrency custody software is an independent storage and security vault system that stores large quantities of digital assets. Its initial purpose was to help institutional investors (hedge funds, for example) shift their technical challenges of keeping digital assets onto a third-party cryptocurrency custody provider or custodians. However, cryptocurrency custody has become a common practice even among individual investors and is required by law in several jurisdictions.
In essence, cryptocurrency custody solutions offer custodial services to store and secure digital assets like cryptocurrency or NFTs. These products can help mitigate several security risks, including crypto theft. However, these products don’t keep any assets. Instead, they safeguard private keys, which are a complex combination of alphanumerics used to access crypto holdings and perform transactions.
Buyers may also come across crypto custody while researching cryptocurrency wallets. In short, crypto wallets are solutions used to store private keys and can be broadly classified as custodial and non-custodial wallets. In custodial wallets, custodians hold the private keys of a user. On the other hand, non-custodial wallets grant users complete control over their private keys.
What Types of Cryptocurrency Custody Software Exist?
Cryptocurrency custody software can be classified into three broad categories as follows:
Crypto self-custody software: Self-custody cryptocurrency software is ideal for users who require complete control over their crypto assets. Simply put, it’s when the user personally holds the private keys without any third-party custodian’s assistance. There are several risks associated with this type of digital asset custody. For example, the associated crypto is lost forever if the holder forgets their private keys. Self-custody crypto software can be in the form of self-managed hardware or software wallet.
Crypto partial-custody software: Partial ownership or custody is the better option if the buyer wants to have ample control over their assets but still wants to benefit from a third-party custodial service. The custodian possesses a key for co-signing the user’s transactions in this custodial software. It’s typically a self-managed wallet with a certain degree of security and assistance from the third-party custodian.
Third-party crypto custody software: As the name suggests, this type of crypto custody software offers third-party crypto custodians responsible for securing the holder’s assets. Out of all three types, this custody solution comes with the highest level of digital asset protection. This software offers different types and levels of security to choose from. For instance, users can store their assets in hot or cold wallets based on their requirements. Since the custodians hold the private keys, buyers can easily recover them in case of any loss.
What are the Common Features of Cryptocurrency Custody Software?
The following are some core features of cryptocurrency custody software:
Key management: Storing and securing private keys is a crucial feature of crypto custody software. Ultimately, key management can be viewed as a form of asset management, as the assets can be accessed on the blockchain only using private keys. The key itself is the asset.
Cold storage: A custody solution offers the highest possible level of security with cold storage. Cold storage stores private keys, so they can’t be accessed from any outside network. It’s crucial for long-term investment in digital assets.
Multi-signature approval: Both partial and third-party custody requires multiple signature approvals to move assets. The purpose of this feature is to restrict a single entity from being able to perform digital asset trading.
Multi-party computing: The multi-party computing (MPC) architecture requires different parties to contribute to computation without being able to view each other's data. MPC adds security while maintaining flexibility.
Policy layer: The policy layer is the cornerstone of any crypto custodial solution. It manages the rules and regulations depending on the value and frequency of transactions.
What are the Benefits of Cryptocurrency Custody Software?
The following are some of the common benefits of using a crypto custody tool:
Convenience: Although self-custody cryptocurrency software grants users complete control over their assets, it involves a lot of work. For instance, holders are responsible for generating and keeping track of private keys. As mentioned earlier, if they lose these keys, they lose access to their assets forever. Such inconveniences are eliminated by relying on a third-party custodian.
Security: Cryptocurrency custody software products are made to secure digital assets and make things easier for holders. It offers reliable security, especially for institutional holders, who hackers heavily target. With the help of these products, businesses can ensure their digital assets are less likely to be stolen or lost.
Key recovery: As mentioned above, crypto custody service providers can help investors recover their private keys if lost. This is a major advantage of third-party custody software over self-custody, as in the latter case, a private key is lost forever. The custodian usually has multiple backups of the keys stored in different locations.
Regulatory requirements: Several government regulations make it mandatory for institutional investors to store their holdings with custodians. The Dodd-Frank Act by the U.S. Securities and Exchange Commission (SEC) mandates that institutional investors who deal with customer assets worth more than $150,000 should store holdings with qualified custodians.
Who Uses Cryptocurrency Custody Software?
Institutional Investors: Financial institutions that deal with customer assets can use crypto custody tools to offload their technical responsibilities around storage and security.
Individual Investors: Individual crypto holders can rely on crypto custody software and reduce the likelihood of their assets being stolen or lost.
Software Related to Cryptocurrency Custody Software
Related solutions that can be used together with cryptocurrency custody software include:
Cryptocurrency wallets: Crypto wallets are digital solutions that enable users to store and manage digital assets. In essence, they allow users to store their private keys securely.
Cryptocurrency exchanges: Crypto exchanges are platforms for trading cryptocurrency for traditional currencies or other assets.
Challenges with Cryptocurrency Custody Software
Identity verification: Anonymity is one of the key principles of blockchain. However, to meet several compliance requirements, custodians must perform know-your-customer (KYC) procedures. Of course, this process can be completed in a few minutes. But it’s not just the customers who need to be verified—even node operators, who write transactions, should be verified. Users can’t perform any transaction until they prove their identity.
Lack of control: A major disadvantage of third-party crypto custody software is that users have no autonomy over their wallets. The custodian has complete control over the assets. They can take several actions, including freezing the stored assets.
How to Buy Cryptocurrency Custody Software
Requirements Gathering (RFI/RFP) for Cryptocurrency Custody Software
The cryptocurrency custody software market is as diverse as it comes. None of the software vendors have a “one-size-fits-all” solution. This is mainly because crypto holders have differing requirements. It’s also because digital currencies are still in the process of being adopted.
The process of buying a cryptocurrency custody solution will be different for individual investors and institutional investors. For individual investors, more emphasis will be on the flexibility and cost-effectiveness of the solution. Whereas for financial institutions, the level of security, availability of integrations, and type of storage will matter more.
This step of understanding what the buyer expects to do with the software product is called requirements gathering. This step can significantly impact the success of the software purchase. Buyers should also have a precise understanding of their budget.
Compare Cryptocurrency Custody Software Products
Create a long list
Buyers should start their software purchase journey by creating a long list of crypto custody products. At this point, buyers should aim to get a better understanding of the options available instead of trying to find the best solution. This initial list can contain any product that meets the organization's basic requirements. The key here is to eliminate products that don’t offer critical functionality.
Create a short list
Buyers should create a shorter list by eliminating products from the initial long list. This can be done by being more specific with their requirements and removing costlier options.
Depending on the requirements, buyers can check whether the platform supports staking for blockchains like Ethereum, Tezos, or Solana and eliminate products accordingly. Buyers can also check the governance policies of the software vendor, check whether the solution is institutional-grade, and see whether there are multiple storage options available.
Conduct demos
Product demos can help buyers effectively compare software products from the short list. Be sure to test the products with the same use cases. Demos are also useful to judge the product's usability and user experience and check whether the product functions as advertised.
Selection of Cryptocurrency Custody Software
Choose a selection team
Choosing a crypto custody solution is a critical decision as it directly affects the security of the institutions’ or individuals’ digital assets. Therefore, it’s crucial to have the right people involved in the decision-making process. Relevant stakeholders include financial advisors, fund managers, security teams, and risk analysts.
Negotiation
Buyers should try having open conversations with the vendors regarding their requirements. Vendors may offer discounts for multi-year contracts and reduce prices by removing certain optional features.
Final decision
It’s advisable to make the final decision by implementing the custody product on a small scale. Buyers can choose to onboard a limited number of assets and see how the solution handles them. If the buyers discover any critical issues or spot undeveloped features, they can take it up with the vendor or re-evaluate their options.
