Institutional Investors Shun Self-Custodial Crypto Solutions

It has been just reported the fact that institutional investors are shunning self-custodial crypto solutions.  Check out the latest reports about this below.

A joint report by Aspen Digital and global accounting firm PwC reveals that institutional investors in Asia are opting for third-party custody service providers to manage the complexities of the digital asset market, indicating the inadequacy of self-custodial solutions.

The report highlights a rising need for institutional-grade custody solutions among family offices, high-net-worth individuals, and external asset managers to secure their digital asset holdings and explore fresh investment opportunities.

Managing digital assets through self-custody solutions gives users full control over their assets, but they also bear sole responsibility for securing their private keys.

Due to the challenges and potential risks involved in this process, many institutions prefer to use third-party custody providers with specialized abilities and expertise.

More than a week ago, we revealed the fact that according to a recent report from Binance, 63.5% of respondents have a positive outlook for the crypto industry in the next year, and 88% hold the same view for the next decade.

However, the ‘Institutional Crypto Outlook Survey’ also revealed that only 26.9% of institutional users believe that real-world use cases will drive the adoption of the sector.

It is important to note that the survey respondents are currently involved in the industry. The survey gathered responses from 208 institutional clients and VIP users of Binance from March 31 to May 15, 2023.

The report, which was released on Friday, highlighted that 25.3% of respondents identified regulatory clarity as a significant factor in promoting crypto adoption.

Additionally, the respondents emphasized that more institutional participation, including crypto-friendly banks and other financial institutions, would also contribute to driving growth in the industry.

According to the report, nearly half of institutional investors, or 47.1%, have kept their crypto allocation consistent over the past year.