Institutional Crypto Custody: Protecting Digital Assets with Cold Storage
Institutional exposure to cryptocurrencies has grown significantly, and securing digital assets through proper custody is now a top priority. Unlike traditional securities, cryptocurrencies are controlled by private cryptographic keys, which can be lost or compromised, resulting in permanent loss of access.
Coinbase Institutional reports holding around $300 billion in assets under custody and supporting over 470 assets for custody. Its Prime infrastructure holds approximately 12% of the global cryptocurrency market capitalization.
Most institutional custodians store long-term holdings in cold wallets that remain disconnected from the internet, reducing exposure to remote cyberattacks. Coinbase's Prime Custody structure predominantly keeps assets in offline wallets, with only a smaller portion maintained online for expected withdrawal requirements.