Bloomberg: Wall Street Optimistic About Potential Opportunities in Cryptocurrency Custody Sector

Hadley Stern, Chief Business Officer of Solana's custody tool Marinade, stated that the cost of custody in the crypto field is 10 times that of protecting traditional assets such as securities and cash. This makes it a potential growth area, attracting startups, Wall Street banks and other companies seeking to enter the digital asset sector. Stern previously oversaw digital asset custody business at BNY Mellon in New York. So far, crypto-native companies like Coinbase Global Inc. and BitGo Inc. have been dominant service providers while most traditional financial firms remain holders due to regulatory uncertainties surrounding digital assets. Although the current size of the custody market is only about $300 million, this business still has appeal with companies like Fireblocks Inc estimating an annual growth rate for this industry at around 30%. Leading custodian banks including BNY Mellon, State Street Corp., and Citigroup Inc., have already made preliminary ventures into cryptocurrency custody or expressed interest.