Study says Bitcoin can be at risk due to subpar safekeeping


Administration consultancy agency Opimas estimates that over USD 190 billion value of Bitcoin is at present in danger because of subpar safekeeping.

A brand new analysis report from Opimas seems to be on the panorama of cryptocurrency custody-enabling know-how suppliers and institutional-grade cryptocurrency custodians in addition to the dimensions of the marketplace for cryptocurrency custody and brokerage providers.

Some key findings within the report embody:


A lot of even the biggest holders of Bitcoin and different digital belongings proceed to depend on storage gadgets meant for particular person buyers. In complete, about 22% of institutional cryptocurrency holdings are safeguarded in comparatively dangerous manners.

No custody resolution is equal – there may be nonetheless no greatest follow in terms of safety and governance relating to personal keys. For instance, some suppliers might depend on time-tested {Hardware} Safety Modules (HSMs), whereas others use a more moderen know-how generally known as Multi-Occasion Computation (MPC).

Opimas estimates that the present annual revenues generated by the institutional crypto brokerage and custody market are roughly USD 2 billion and can develop to almost USD 8 billion by 2026 – a sizeable portion of this coming from brokerage providers.

Rules surrounding establishments’ potential to retailer cryptocurrency have change into clearer (and in some instances extra favorable) in quite a few jurisdictions. With the advances in brokerage and custody options, Opimas expects institutional cryptocurrency holdings to develop from 20% of the cryptocurrency market cap to over 50% by 2026.

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