Top Banks Offering Crypto Custody Services in 2025

In 2025, leading crypto custody banks such as BNY Mellon, State Street, DBS Bank, and innovative providers like Safeheron set new standards for secure cryptocurrency management. Institutions and individuals increasingly demand regulated solutions as cryptocurrency adoption accelerates. Market data shows the crypto custody sector will reach $3.28 billion this year, driven by institutional engagement and regulatory clarity. Major banks now integrate advanced technologies, including multi-party computation and secure enclaves, to protect digital assets.

Key Takeaways

• Crypto custody banks protect digital assets by combining strong security, regulatory compliance, and advanced technology.
• Leading banks like BNY Mellon, State Street, DBS Bank, and innovative providers such as Safeheron set high standards for crypto custody in 2025.
• Multi-Party Computation (MPC) and Trusted Execution Environment (TEE) technologies greatly improve the safety of stored cryptocurrencies.
• Regulatory clarity and compliance are essential for crypto custody banks to build trust and meet legal requirements worldwide.
• User-friendly platforms with fast onboarding, 24/7 support, and seamless integration enhance the experience for both individuals and institutions.
• Choosing a crypto custody bank requires careful evaluation of security features, regulatory licenses, fees, accessibility, and reputation.
• Safeheron offers a unique self-custody solution that empowers clients with direct control and strong security using MPC and TEE.
• The crypto custody market is growing rapidly, driven by institutional demand and the need for secure, insured, and compliant digital asset management.

Crypto Custody Banks Overview

What Is Crypto Custody?

Crypto custody refers to the safeguarding and management of digital assets, such as cryptocurrency, by specialized institutions or service providers. The U.S. Securities and Exchange Commission defines digital assets as those issued and transferred through distributed ledger or blockchain technology. These assets include virtual currencies, coins, and tokens. Crypto custody banks hold and control these assets on behalf of clients, ensuring compliance with financial regulations like the Customer Protection Rule. In practice, crypto custody involves secure storage, transaction authorization, and record-keeping. Major financial institutions, such as JPMorgan, now provide banking services to cryptocurrency exchanges, demonstrating the integration of crypto custody into mainstream finance.

Why Crypto Custody Matters in 2025

The year 2025 marks a turning point for the cryptocurrency industry. More than 20% of institutional investors now consider secure custody a critical factor for entering or expanding in the market. As the value of cryptocurrency rises, so does the risk of theft, loss, or operational failure. Crypto custody banks address these risks by offering robust security, regulatory compliance, and operational efficiency. The approval of multiple Bitcoin ETFs by the SEC has led to over 30% of Bitcoin being held by ETFs or government bodies. This trend highlights the need for qualified custodians to manage large volumes of crypto assets. Regulatory changes, such as the OCC’s expanded authority for national banks and the repeal of SEC’s SAB 121, have lowered barriers for traditional banks to offer crypto custody services. These developments confirm the growing importance of secure, compliant custody solutions for both institutions and individuals.

Tip: Institutions should evaluate the security, compliance, and operational capabilities of crypto custody banks before entrusting them with cryptocurrency holdings.

Types of Custody Solutions

Crypto custody banks offer a range of solutions to meet diverse client needs. The main types include:

• Self-Custody: Clients retain direct control of their cryptocurrency using hardware wallets or secure software. This method offers autonomy but requires strong technical knowledge.
• Third-Party Custody: Banks or specialized providers hold crypto assets on behalf of clients. This approach delivers professional security and regulatory oversight.
• Hybrid Custody: Combines elements of self-custody and third-party services, allowing clients to customize access and control.

The table below summarizes key initiatives by leading crypto custody banks in 2025:

Crypto custody banks now play a central role in the cryptocurrency ecosystem. They provide secure, regulated access to crypto assets for a wide range of clients, from individuals to large institutions.

Best Crypto-Friendly Banks by Region

USA

The United States leads the global landscape for best crypto-friendly banks in 2025. Regulatory clarity and institutional adoption drive innovation in cryptocurrency services. Major banks now offer secure custody, trading, and settlement solutions for digital assets. The competitive environment features both established financial institutions and new entrants, each providing unique value to clients.

BNY Mellon

BNY Mellon stands as a pioneer among crypto-friendly banks. The institution launched its Digital Asset Custody Platform, enabling clients to hold and transfer cryptocurrency alongside traditional assets. BNY Mellon’s platform integrates advanced security, including cold storage and multi-signature wallets. The bank’s commitment to regulatory compliance and risk management appeals to institutional investors seeking reliable cryptocurrency custody.

State Street

State Street has expanded its digital asset division, offering comprehensive cryptocurrency custody and settlement services. The bank’s platform supports a wide range of digital assets and integrates with leading crypto trading platforms. State Street emphasizes transparency, robust security protocols, and regulatory adherence, making it a preferred choice for asset managers and institutional clients.

JPMorgan Chase

JPMorgan Chase demonstrates strong institutional commitment to cryptocurrency. The bank operates Onyx, a blockchain platform that supports JPM Coin for instant settlements. JPMorgan’s crypto custody services include secure storage, real-time fraud alerts, and FDIC insurance for fiat deposits. The bank’s focus on compliance and innovation positions it among the best crypto-friendly banks in the USA.

Citibank

Citibank has partnered with leading blockchain firms to deliver secure cryptocurrency custody and tokenization services. The bank’s digital asset unit offers permissioned blockchain solutions and supports institutional adoption of cryptocurrency. Citibank’s approach combines scalability, security, and regulatory compliance, meeting the needs of both traditional and digital asset investors.

Ally Bank

Ally Bank appeals to cryptocurrency enthusiasts by supporting crypto transactions through integrated exchange partnerships and crypto ETFs. The bank provides reliable banking services, real-time fraud alerts, and biometric logins. Ally Bank’s customer-centric approach and support for digital assets make it a notable player among crypto-friendly banks.

Coinbase Custody

Coinbase Custody operates as a specialized crypto custody provider, serving institutional clients with secure storage and insurance coverage. The platform supports a broad range of cryptocurrencies and offers advanced security features, including cold storage and multi-factor authentication. Coinbase Custody’s integration with the Coinbase crypto trading platform enhances its appeal to investors seeking seamless digital asset management.

U.S. market analysis highlights the importance of security, regulatory compliance, and real-time payment solutions. Leading banks such as JPMorgan Chase, Ally Bank, and Coinbase Custody set industry standards for cryptocurrency custody and risk management.

• Key competitive factors among the best crypto-friendly banks in the USA include:
  • Cold storage and multi-signature wallets
  • FDIC insurance for fiat deposits
  • Biometric logins and real-time fraud alerts
  • API integrations for digital asset custody
  • Strong regulatory compliance and risk management

Europe

Europe’s best crypto-friendly banks benefit from rapid market growth, technological innovation, and a harmonized regulatory environment. The Markets in Crypto-Assets (MiCA) framework provides clarity and consumer protection, supporting the expansion of cryptocurrency services. However, increased compliance costs and jurisdictional restrictions shape the competitive landscape.

BNP Paribas

BNP Paribas has integrated cryptocurrency custody and tokenization into its core banking services. The bank’s digital asset platform supports institutional clients with secure storage, regulatory compliance, and seamless integration of crypto and fiat accounts. BNP Paribas leverages advanced technology to deliver efficient and secure digital asset management.

Société Générale

Société Générale offers institutional-grade cryptocurrency custody and trading services. The bank’s platform supports tokenized securities and digital bonds, aligning with Europe’s regulatory standards. Société Générale’s focus on security, transparency, and compliance positions it among the best crypto-friendly banks in the region.

Revolut

Revolut, a digital banking app, enables users to buy, sell, and withdraw cryptocurrency directly within the platform. The app appeals to retail clients seeking easy access to digital assets. Revolut’s integration of crypto and fiat services, combined with user-friendly features, drives its popularity among European cryptocurrency users.

Deutsche Bank

Deutsche Bank has launched a digital asset custody platform for institutional clients. The bank’s solution supports a wide range of cryptocurrencies and integrates with DeFi protocols. Deutsche Bank emphasizes security, regulatory compliance, and seamless connectivity with traditional banking services.

Market analyses project Europe’s crypto banking sector to exceed $19 billion by 2027. The MiCA framework harmonizes regulations, improving consumer protection and market integrity. Leading banks such as BNP Paribas, Société Générale, and Deutsche Bank stand out for their compliance, security, and integration of crypto and fiat services. Despite regulatory challenges, these institutions remain at the forefront of cryptocurrency adoption.

United Kingdom

The United Kingdom maintains a significant presence in the global cryptocurrency market. Regulatory clarity, market growth, and high adoption rates create a favorable environment for best crypto-friendly banks. The UK’s principle-based regulatory framework supports innovation while ensuring consumer safeguards.

Standard Chartered

Standard Chartered has established itself as a leader in cryptocurrency custody and settlement services. The bank’s Zodia Custody joint venture delivers institutional-grade security and regulatory compliance. Standard Chartered’s focus on Asian and global markets enhances its reputation among the best crypto-friendly banks in the UK.

HSBC

HSBC offers digital asset custody and tokenization services for institutional clients. The bank’s platform integrates with traditional banking systems, providing secure and compliant access to cryptocurrency. HSBC’s commitment to innovation and regulatory adherence supports its position in the UK’s digital asset ecosystem.

Monzo

Monzo, an app-based bank, adopts a permissive stance on cryptocurrency transactions. While Monzo does not offer native crypto services, it allows users to interact with crypto trading platforms and manage digital assets. Monzo’s user-friendly approach and openness to cryptocurrency appeal to tech-savvy clients.

The UK’s regulatory environment, market growth, and high adoption rates support the expansion of crypto custody and crypto lending services. Leading banks such as Standard Chartered, HSBC, and Monzo continue to innovate, meeting the evolving needs of cryptocurrency users and institutions.

Asia-Pacific

The Asia-Pacific region has emerged as a powerhouse in the global cryptocurrency custody market. Major financial centers such as Singapore, Japan, and Australia drive innovation and adoption. The region’s rapid growth reflects the increasing demand for secure, compliant digital asset custody solutions among institutional and corporate clients. Asia-Pacific stands out for its leadership in hybrid and decentralized custody models, making it a focal point for the best crypto-friendly banks in 2025.

• Asia-Pacific’s crypto custody market is expanding at a strong pace, with the global market projected to grow from $2.92 billion in 2024 to $3.28 billion in 2025.
• Countries like China, India, Japan, Australia, and Singapore play significant roles in shaping the digital asset custody landscape.
• Regional trends show a surge in institutional adoption, with banks and fintech firms introducing advanced custody solutions to meet evolving regulatory standards.

DBS Bank

DBS Bank, headquartered in Singapore, leads the region in digital asset innovation. The bank operates the DBS Digital Exchange, which offers institutional-grade custody for a wide range of cryptocurrencies. DBS Bank integrates cold wallet storage, robust compliance protocols, and seamless connectivity with traditional banking services. The bank’s commitment to regulatory standards and security makes it one of the best crypto-friendly banks for institutional investors in Asia-Pacific. DBS Bank also participates in regional tokenization projects and digital bond issuances, reinforcing its leadership in the digital asset ecosystem.

Mitsubishi UFJ Trust and Banking

Mitsubishi UFJ Trust and Banking, part of Japan’s largest financial group, has established itself as a pioneer in cryptocurrency custody. The bank launched a digital asset custody platform that supports both retail and institutional clients. Mitsubishi UFJ Trust and Banking leverages advanced security technologies, including multi-signature wallets and blockchain-based recordkeeping. The bank’s platform complies with Japan’s evolving regulatory framework, ensuring safe and transparent management of digital assets. Its focus on innovation and compliance positions it among the best crypto-friendly banks in the region.

ANZ

ANZ, one of Australia’s leading banks, has expanded its digital asset services to include secure cryptocurrency custody. The bank offers integrated solutions for asset managers, family offices, and corporate clients. ANZ’s custody platform supports a variety of cryptocurrencies and provides real-time transaction monitoring, insurance coverage, and regulatory reporting. The bank’s proactive approach to compliance and risk management appeals to institutions seeking reliable digital asset custody in the Asia-Pacific market.

Safeheron

Safeheron represents a new generation of digital asset custody providers in Asia-Pacific. Originating in Singapore, Safeheron specializes in enterprise-grade self-custody solutions for financial institutions and businesses. The company leverages advanced technologies such as Multi-Party Computation (MPC) and Trusted Execution Environment (TEE) to eliminate single-point failures and enhance asset protection. Safeheron’s platform supports a wide range of cryptocurrencies and offers customizable wallet governance, streamlined approval workflows, and real-time contract monitoring. The company’s robust security framework, combined with ISO/IEC 27001:2022 and SOC 2 certifications, positions it as a trusted partner for institutions seeking secure and efficient digital asset management. Safeheron’s innovative approach and commitment to compliance make it a standout among the best crypto-friendly banks and custody providers in the region.

Asia-Pacific’s leadership in digital asset innovation and regulatory clarity continues to attract global attention. The region’s best crypto-friendly banks and custody providers set new standards for security, compliance, and operational excellence in 2025.

Global & Crypto-Native Custodians

The global landscape for cryptocurrency custody has evolved rapidly, with specialized custodians and traditional banks converging to offer institutional-grade solutions. Crypto-native custodians play a critical role in providing secure, regulated access to digital assets for clients worldwide. These institutions combine advanced technology, comprehensive insurance, and robust compliance tools to reduce operational risk and support the growing needs of the cryptocurrency market.

• Major crypto-native custodians operate as regulated institutions or specialized trust companies.
• Mergers and acquisitions between global custodian banks and digital asset custody providers have accelerated, reshaping the industry.
• Institutional-grade custody solutions emphasize cold storage, multi-signature schemes, and MPC technology.
• Custodians offer integrated services such as staking, governance participation, and tailored reporting.
• Regulatory authorities now permit banks to provide cryptoasset custody services directly or through third-party sub-custodians, provided they maintain robust risk management and full compliance with applicable laws.

Anchorage Digital

Anchorage Digital stands as a leading crypto-native custodian, offering secure custody, trading, and staking services for institutional clients. The company holds a federal charter as a digital asset bank in the United States, ensuring compliance with stringent regulatory standards. Anchorage Digital employs advanced security measures, including MPC and hardware security modules, to protect client assets. Its integrated platform supports a broad range of cryptocurrencies and provides tailored reporting and governance solutions.

SEBA Bank

SEBA Bank, based in Switzerland, bridges traditional finance and digital assets. The bank offers regulated custody, trading, and lending services for cryptocurrencies and tokenized assets. SEBA Bank’s custody platform features cold storage, insurance coverage, and seamless integration with fiat banking. The bank’s regulatory compliance and innovative product offerings make it a preferred choice for institutions seeking secure digital asset management on a global scale.

Julius Baer

Julius Baer, a renowned Swiss private bank, has expanded its services to include cryptocurrency custody and trading. The bank partners with leading fintech firms to deliver secure, compliant access to digital assets for high-net-worth clients. Julius Baer’s custody solutions integrate with its wealth management platform, providing clients with a unified view of traditional and digital holdings. The bank’s reputation for security and discretion enhances its appeal among global investors.

BitGo

BitGo operates as a global leader in digital asset custody, serving institutional clients, exchanges, and asset managers. The company’s custody platform features multi-signature wallets, insurance protection, and support for over 500 cryptocurrencies. BitGo’s robust compliance framework and integration with trading and settlement services position it as a trusted partner for institutions navigating the complexities of the cryptocurrency market.

Fireblocks

Fireblocks delivers a secure digital asset custody and transfer platform for financial institutions and enterprises. The company utilizes MPC technology and secure enclave hardware to safeguard assets and eliminate single points of failure. Fireblocks supports a wide range of cryptocurrencies and offers APIs for seamless integration with trading, DeFi, and payment platforms. Its focus on automation, security, and compliance has made it a top choice among global crypto-native custodians.

The convergence of traditional banks and crypto-native custodians is reshaping the digital asset custody landscape. Institutions now benefit from enhanced security, regulatory expertise, and integrated services, setting new benchmarks for the best crypto-friendly banks and custody providers worldwide.

Key Features of Leading Crypto Custody Banks

Security and Technology

Multi-Party Computation (MPC)

Multi-Party Computation (MPC) stands as a cornerstone of modern crypto asset security. Leading banks use MPC to split private keys into multiple fragments, storing them across secure locations. This approach ensures that no single party can access the complete key, reducing the risk of theft or unauthorized access. MPC also enables secure transaction signing, even if one device becomes compromised. Banks combine MPC with cold storage and multi-signature wallets to create a layered defense for crypto assets.

Trusted Execution Environment (TEE)

Trusted Execution Environment (TEE) technology further strengthens digital asset custody. TEE creates isolated environments within hardware, protecting sensitive operations from external threats. Banks use TEE to safeguard transaction approvals and key management processes. This technology ensures that even if the main operating system is breached, attackers cannot access critical data. TEE, combined with MPC, provides robust protection for digital asset services.

Insurance and Asset Protection

Insurance coverage and asset protection policies play a vital role in digital asset custody. Top banks offer insurance against cyberattacks, theft, and operational failures. They enforce strict segregation of client funds from operational accounts, using separate wallet infrastructures and multi-party authorization for transfers. Automated monitoring systems and independent audits help prevent unauthorized transactions and ensure compliance with industry standards.

Leading banks implement multi-layered security infrastructure, including physical security, advanced cybersecurity, disaster recovery, secure key backup, and strict personnel policies. Regular security audits, transaction signing protocols, and employee training support wallet hygiene and operational efficiency.

Regulatory Compliance

Crypto custody banks must adhere to a complex web of global regulations. They comply with frameworks such as the SEC Custody Rule, AML and KYC regulations, GDPR, FATF Travel Rule, Basel III and IV, and tax reporting standards. Regular internal and external audits verify compliance and transparency. The table below summarizes key regulatory compliance aspects:

Automated compliance platforms and dedicated teams help banks identify and remediate gaps, supporting audit readiness and regulatory reporting.

Supported Assets and Services

Banks now support a broad range of crypto assets, including Bitcoin, Ethereum, stablecoins, and tokenized securities. The global asset base under management continues to grow, reaching over $115 trillion, which drives demand for sophisticated digital asset services. Leading banks provide real-time data on trade status and corporate actions, enhancing transparency and operational efficiency. They invest in technology and data ecosystems, including cloud platforms, to improve analytics and client service. This strategic integration ensures that digital asset custody solutions remain resilient and responsive to evolving client needs.

User Experience

User experience stands as a critical differentiator among leading crypto custody banks in 2025. Institutions and individuals expect more than just security and compliance. They demand platforms that offer intuitive navigation, responsive support, and seamless integration with their existing workflows.

Top crypto custody banks invest heavily in user interface (UI) and user experience (UX) design. These banks provide dashboards that display real-time asset balances, transaction histories, and compliance alerts. Users can access these features through web portals, mobile apps, and APIs. The design focuses on clarity, reducing the learning curve for both new and experienced clients.

A well-designed dashboard helps users monitor assets and manage transactions efficiently, reducing the risk of errors.

Onboarding processes have become faster and more transparent. Leading providers guide clients through account setup with step-by-step instructions, video tutorials, and dedicated onboarding specialists. Many banks now offer automated KYC (Know Your Customer) verification, which speeds up compliance checks and account activation.

Customer support plays a vital role in user satisfaction. The best crypto custody banks maintain 24/7 support channels, including live chat, email, and phone assistance. Some institutions assign dedicated account managers to institutional clients, ensuring personalized service and rapid issue resolution.

Accessibility remains a top priority. Banks design their platforms to support multiple languages and comply with accessibility standards. This approach ensures that users from different regions and backgrounds can interact with the platform without barriers.

Integration with other financial tools enhances the overall experience. Leading banks provide APIs and plug-ins that connect custody platforms with trading desks, portfolio management systems, and tax reporting software. This connectivity streamlines operations and reduces manual data entry.

The table below highlights key user experience features offered by top crypto custody banks:

Leading banks understand that a positive user experience builds trust and encourages long-term relationships. They continue to refine their platforms, responding to user feedback and industry trends.

Safeheron and MPC Self-Custody Solutions

Safeheron Overview

Safeheron stands as a leading innovator in digital asset custody, with a strong presence in the Asia-Pacific region and a growing global reputation. The company specializes in self-custody solutions for digital assets, serving a diverse client base that includes OTC desks, exchanges, asset managers, DeFi projects, and wallet service providers. Safeheron leverages advanced security technologies such as Multi-Party Computation (MPC) and Trusted Execution Environment (TEE), which are recognized as industry standards for secure digital asset custody. The company’s commitment to regulatory compliance is evident through its automated AML and KYC protocols, which address critical market demands. Safeheron’s open-source verifiable algorithms and integration with Web3 and AI-driven solutions reflect its adaptability to emerging trends. Continuous community engagement and education further reinforce Safeheron’s leadership in digital asset services.

MPC Self-Custody Features

Safeheron’s MPC Self-Custody solution delivers institutional-grade digital asset custody by combining MPC and TEE technologies. This approach splits private keys into multiple parts, eliminating single points of failure and enhancing security. The platform features a robust policy engine that allows institutions to configure approval workflows tailored to their operational needs. Multi-layer security models, including hardware isolation, protect sensitive operations from external threats. Open-source verifiable algorithms provide transparency and build trust among clients. Safeheron supports secure Web3 access, multi-signature governance, and automated compliance monitoring. The platform integrates seamlessly with public EVM-compatible blockchains, DeFi protocols, and major exchanges, enabling efficient management of digital assets across diverse environments. Clients such as HashKey OTC Global have reported improved operational efficiency and regulatory compliance when handling high-volume, multi-chain transactions.

Security and Compliance Advantages

Safeheron’s security framework sets a high standard in digital asset custody. By leveraging MPC and TEE, the platform ensures that no single party can compromise private keys or transaction approvals. Hardware isolation and multi-layer security models protect against both internal and external threats. Automated AML and KYC monitoring support regulatory compliance, while the policy engine enforces customizable approval workflows. Open-source algorithms allow for independent verification, increasing transparency and client confidence. Safeheron’s continuous adaptation to regulatory and technological changes ensures that clients remain compliant in a rapidly evolving landscape. The company’s broad customer base and strong market acceptance highlight its effectiveness in delivering secure, compliant, and efficient digital asset custody solutions.

Safeheron’s approach empowers financial institutions to manage digital assets with confidence, combining advanced technology, regulatory compliance, and operational flexibility.

Use Cases for Financial Institutions

Financial institutions face increasing demands for secure, scalable, and compliant management of digital assets. Safeheron addresses these needs with a suite of solutions tailored for banks, exchanges, OTC desks, payment providers, and digital banks. The platform’s flexibility and advanced security features enable institutions to manage assets efficiently while meeting regulatory requirements.

Safeheron’s technology supports a wide range of use cases:

• Exchanges and Trading Platforms: Exchanges rely on Safeheron to safeguard client funds and streamline withdrawal processes. The platform’s customizable approval workflows and real-time monitoring help exchanges prevent unauthorized transactions and respond quickly to security threats. By integrating Safeheron’s MPC-TEE architecture, exchanges achieve both operational efficiency and robust protection against internal and external risks.
• OTC Desks and Asset Managers: OTC desks and asset managers benefit from Safeheron’s multi-layer security and policy engine. These features allow institutions to set granular permissions, automate transaction approvals, and segregate client assets. The platform’s support for customizable on-premise white-label MPC wallets via SDK enables asset managers to offer branded custody solutions while maintaining full control over private keys.
• Digital Banks and Payment Providers: Digital banks and payment companies use Safeheron to manage high transaction volumes securely. The platform’s scalability has been demonstrated by processing over $60 billion in total transfer volume, including $10 billion in a single month. Institutions can handle large-scale operations without compromising security or compliance.
• DeFi Projects and Web3 Enterprises: DeFi projects leverage Safeheron’s open-source cryptographic code and integration with public blockchains to ensure transparency and trust. The platform’s compatibility with EVM-compatible chains and DeFi protocols allows seamless interaction with decentralized applications, supporting innovation in the digital asset space.
• Regulatory Compliance and Audit Readiness: Safeheron’s adherence to industry standards, including ISO27001 and SOC2 Type I and II, ensures institutions meet global compliance requirements. The platform’s extensive audit trails and proactive support services help clients prepare for regulatory reviews and maintain operational integrity.

Institutions worldwide have adopted Safeheron’s solutions, resulting in a customer retention rate exceeding 90%. Assets under custody have peaked at $1.5 billion, reflecting strong market confidence. Safeheron’s transparent approach, including open-sourcing most cryptographic code and providing security best practice advisories, builds lasting trust with clients.

Financial institutions seeking to manage digital assets at scale find Safeheron’s solutions deliver security, flexibility, and regulatory assurance. The platform’s proven track record and global client base highlight its value in the evolving landscape of digital asset custody.

Comparing Crypto Custody Banks

At-a-Glance Comparison Table

Selecting the right crypto custody bank requires a clear understanding of each provider’s capabilities. The following table summarizes the strengths and challenges of several major institutions in the digital asset custody market:

This table provides a quick reference for institutions and individuals evaluating the landscape of crypto custody providers in 2025.

Strengths and Weaknesses

Crypto custody banks each bring unique advantages and face distinct challenges. BNY Mellon demonstrates deep fiduciary expertise and regulatory oversight. The bank bridges traditional and digital assets, acting as a transfer agent for Bitcoin ETFs. However, the scope of its crypto-specific activities remains unclear, and it offers limited direct crypto exchange operations.

State Street Bank explores digital asset capabilities and partners with infrastructure providers. Its service offerings continue to develop, and regulatory uncertainties present ongoing challenges. Silvergate Bank once led with its real-time payment network for crypto clients, but high deposit volatility and market risks contributed to its failure.

Signature Bank introduced a blockchain-based payment solution, Signet, which enabled real-time payments around the clock. The bank attracted significant deposits from the crypto industry, but volatility and the cessation of crypto-backed loans led to instability.

Coinbase, as a crypto-native custodian, stores client cash in FDIC-insured accounts and maintains large reserves at partner banks. This approach provides strong protection for client funds. Circle, a stablecoin issuer, also holds significant reserves in traditional banks, ensuring asset backing and transparency.

When comparing these institutions, decision-makers should consider several factors:

• Regulatory oversight and compliance
• Integration with traditional financial systems
• Security infrastructure and insurance coverage
• Transparency in operations and reporting
• Track record in managing digital asset volatility

Institutions should weigh both the strengths and challenges of each provider. A thorough evaluation ensures alignment with organizational needs and risk tolerance.

How to Choose Among Crypto Custody Banks

Regulatory Factors

Regulatory compliance stands as a primary consideration when selecting among crypto custody banks. Institutions and individuals should verify that banks hold appropriate licenses from authorities such as the SEC or CFTC. These licenses demonstrate adherence to strict standards for asset protection and transparency. Leading banks implement robust KYC and AML procedures, ensuring that all clients undergo thorough identity verification and transaction monitoring. Regulatory frameworks also require banks to segregate client assets, conduct regular third-party audits, and maintain insurance coverage for digital holdings.

Key evaluation points include:

• Regulatory licenses and jurisdictional approvals
• Compliance with KYC/AML standards
• Asset segregation and proof-of-reserves audits
• Transparency in reporting and disclosures

Banks like Anchorage Digital and Coinbase Custody illustrate these criteria by maintaining regulatory approvals and integrating advanced compliance tools. Institutions seeking crypto lending services or other financial solutions should prioritize providers with a proven regulatory track record.

Always review a bank’s regulatory disclosures and audit reports before entrusting digital assets.

Security and Technology

Security and technology form the backbone of any reliable crypto custody provider. Top banks deploy advanced protocols such as Multi-Party Computation (MPC), multi-signature wallets, and cold storage to safeguard assets. These measures prevent unauthorized access and reduce the risk of internal or external threats. Banks also invest in end-to-end encryption, ISO 27001 and SOC 2 Type II certifications, and continuous penetration testing to identify vulnerabilities.

A comprehensive security assessment should include:

• Use of MPC, multi-signature wallets, and cold storage
• Regular penetration and integration testing with blockchain networks
• Secure software development practices and code reviews
• Privilege separation and prohibition of default credentials
• Supplier relationship controls for outsourced services
• Incident management and business continuity planning

Banks like Fireblocks and BitGo demonstrate institutional-grade performance, offering uptime above 99.99% and detailed audit trails. Safeheron, for example, leverages MPC and TEE technologies, providing a robust security framework for digital asset management. Disaster recovery plans and 24/7 support further enhance operational resilience.

Security certifications and transparent incident response protocols signal a bank’s commitment to protecting client assets.

Fees and Pricing

Understanding the fee structure is essential when comparing crypto custody banks. Providers typically charge custody fees as an annual percentage of assets under management. Some banks impose setup fees for account opening and withdrawal fees for each transaction. For example, Gemini charges a 0.40% annual custody fee and $125 per withdrawal. Fee transparency allows clients to anticipate costs and avoid unexpected charges.

Common fee types include:

Banks should provide clear documentation of all fees, including those related to crypto lending or additional financial solutions. Comparing fee structures across banks helps clients select the most cost-effective option for their needs.

Clients should request a detailed fee schedule and clarify any potential hidden costs before opening an account.

Accessibility and Support

Accessibility and support play a crucial role when evaluating crypto custody banks. Institutions and individuals require platforms that offer easy access to their digital assets and responsive customer service. Leading providers design user interfaces that simplify navigation. Clients can view balances, initiate transactions, and monitor activity with minimal effort. Many banks offer multi-platform access, including web portals, mobile apps, and APIs. This flexibility allows users to manage assets from any location.

Support services distinguish top-tier custody banks. Reliable providers maintain 24/7 customer support through live chat, email, and phone. Some assign dedicated account managers to institutional clients. These managers help resolve issues quickly and provide guidance on complex transactions. Fast onboarding processes also matter. Automated KYC verification and step-by-step setup instructions reduce wait times for new clients.

Language support and accessibility features ensure that users from different regions and backgrounds can interact with the platform. Leading banks offer multi-language interfaces and comply with accessibility standards. This approach removes barriers for clients with diverse needs.

Safeheron, for example, provides a seamless onboarding experience and multi-platform support. Its mobile app, web console, and browser extensions allow institutions to manage assets efficiently. The company’s dedicated support team assists clients with technical questions and compliance requirements. Safeheron’s focus on accessibility and responsive service helps institutions operate smoothly in the fast-paced digital asset market.

Choose a custody provider that offers intuitive interfaces, multi-channel support, and fast onboarding. These features save time and reduce operational risk.

Reputation and Track Record

A provider’s reputation and performance history offer valuable insights into its reliability. Institutions should review regulatory compliance, security features, insurance coverage, and market performance before making a decision. Established providers often hold industry certifications and maintain strong audit records.

The table below summarizes the reputation and track record of leading crypto custody banks and custodians in 2025:

Providers like Gemini and BitGo demonstrate strong regulatory compliance and robust insurance coverage. Fireblocks and Coinbase Custody lead in technology and transaction speed. Kingdom Trust and Digivault focus on user-friendly onboarding and liquidity management. These factors contribute to their positive reputations.

Innovative providers such as Safeheron have earned trust through advanced security, regulatory certifications, and a proven track record with institutional clients. Safeheron’s ISO/IEC 27001:2022 and SOC 2 Type II certifications, along with its high customer retention rate, reflect its commitment to excellence.

A strong reputation and consistent performance history signal a provider’s ability to safeguard assets and deliver reliable service. Institutions should prioritize banks and custodians with transparent records and industry recognition.

Pros and Cons of Crypto Custody Banks

Advantages

Crypto custody banks offer a range of benefits that appeal to both institutions and individuals seeking secure digital asset management. These providers combine regulatory compliance, advanced security, and insurance coverage to deliver peace of mind. Many clients value the legitimacy and cross-border utility that regulated custodians provide. For example, institutions often select custodians with strong regulatory status in the United States, Europe, or Asia to simplify wealth verification and support global operations.

The table below summarizes key advantages of leading crypto custody banks:

Clients frequently highlight the seamless integration with traditional finance, robust insurance, and the ability to meet complex regulatory requirements. These features help institutions manage risk, support cross-border transactions, and build trust with stakeholders.

Crypto custody banks bridge the gap between digital assets and traditional financial systems, offering regulated, secure, and insured solutions that meet the needs of a global client base.

Disadvantages

Despite their strengths, crypto custody banks present several challenges and risks that clients must consider. The evolving regulatory landscape creates uncertainty, as rules differ widely across jurisdictions. This variation can impact the level of security and oversight that custodians provide.

Key disadvantages include:

• Regulatory uncertainty varies by country, affecting security expectations and operational controls.
• Counterparty risk remains significant, as seen in major exchange failures that resulted in substantial losses.
• Loss or theft of private keys can lead to irreversible asset loss, with no recourse for recovery.
• Operational complexity increases the risk of human error, especially in self-custody or hybrid models.
• Physical risks exist for hardware or paper wallets, including misplacement, damage, or theft.
• Centralized exchanges and custodians are frequent targets for hacks and insider threats, with billions lost historically.
• Lack of insurance or regulatory protection means losses are often permanent.
• The regulatory environment continues to evolve, with new frameworks like MiCA and FSMA changing risk profiles and adoption rates.
• Structural issues arise when exchanges offer multiple services, creating conflicts of interest and increasing risk.
• Institutions face unique challenges compared to traditional finance, requiring robust infrastructure and regulated partners.

Institutions should conduct thorough due diligence and select custodians with strong regulatory credentials, comprehensive insurance, and a proven track record to mitigate these risks.

Selecting a secure, compliant, and innovative crypto custody bank remains essential in 2025. Regulatory bodies and market trends highlight the need for robust governance, risk management, and advanced technology. The table below summarizes key drivers shaping the industry:

Readers should compare both established banks and new providers like Safeheron. Research, expert consultation, and a careful assessment of individual needs will help ensure the right choice for digital asset custody.

FAQ

What is a crypto custody bank?

A crypto custody bank securely stores and manages digital assets for clients. These banks use advanced technology and follow strict regulations. They help individuals and institutions protect their cryptocurrencies from theft, loss, or unauthorized access.

How does Safeheron differ from traditional crypto custody banks?

Safeheron offers self-custody solutions using Multi-Party Computation (MPC) and Trusted Execution Environment (TEE). Clients control their assets directly. Traditional banks often hold assets on behalf of clients. Safeheron’s approach reduces single-point failure risks and increases transparency.

Why do institutions need regulated crypto custody services?

Regulated custody services ensure compliance with laws and industry standards. Institutions trust these services to protect assets, manage risks, and meet audit requirements. Regulatory oversight also builds confidence among investors and stakeholders.

What types of digital assets do leading custody banks support?

Most leading custody banks support Bitcoin, Ethereum, stablecoins, and many ERC-20 tokens. Some also manage tokenized securities and NFTs. Asset support varies by provider, so clients should check compatibility before choosing a service.

How do crypto custody banks protect against hacks and theft?

Banks use multiple security layers, including MPC, cold storage, and multi-signature wallets. Regular audits, insurance coverage, and strict access controls further reduce risks. Many providers also monitor transactions in real time to detect suspicious activity.

Can individuals use crypto custody banks, or are they only for institutions?

Many crypto custody banks serve both individuals and institutions. Some focus on large clients, while others offer retail-friendly solutions. Individuals should review account minimums, supported assets, and service features before opening an account.

What certifications or audits should clients look for in a custody provider?

Clients should look for ISO/IEC 27001, SOC 2 Type I & II, and regular third-party security audits. These certifications show that the provider follows best practices for data protection and operational security.

How quickly can clients access their assets in a custody solution?

Access times depend on the provider and security settings. Some banks offer instant withdrawals, while others require multi-step approvals. Clients should review withdrawal policies and approval workflows to ensure they meet operational needs.