Share this article
Bernstein Says Custody Services Are the Foundation for Institutional Crypto Adoption
The crypto custody revenue opportunity could grow to $8 billion by 2033, a report from the brokerage firm said.
By Will Canny
Updated May 9, 2023, 4:06 a.m. Published Jan 17, 2023, 11:33 a.m.
Make us preferred on Google
The collapse of crypto exchange FTX has led to a greater focus on using regulated custodians, and the custody revenue opportunity could grow to $8 billion by 2033 from less than $300 million today, Bernstein said in a research report on Tuesday.
“Crypto custody is the foundational enabler for institutional adoption,” analysts Gautam Chhugani and Manas Agrawal wrote, adding that “unlike legacy custody, crypto custody is all about securing the private key,” which makes it a more of a technological endeavor.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The Bernstein analysts said post-FTX they expect a jump in “crypto custody penetration” with existing investors and a sharp growth in custody services in the medium term driven by increased institutional participation in digital-asset markets.
The broker said there is a large revenue opportunity for crypto firms and banks to provide Wall Street-like custody, market-making and prime brokerage services to new crypto investors.
Market making is expected to increase as institutional participation grows and with it demand for liquidity in large-cap coins and less popular tokens, the note said. A market maker is a firm that provides liquidity for an asset or security.
Institutional crypto investors will also need prime brokerage services such as over-the-counter trading desks, derivatives, lending and other structured products, and Bernstein estimates that this could grow to a $14 billion revenue opportunity by 2033.
Read more: Bernstein Expects Crypto Revenue to Jump to Around $400B by 2033
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business
Brian Armstrong returns from World Economic Forum with message: traditional finance is taking crypto seriously
What to know:
- Coinbase CEO Brian Armstrong said a top executive at one of the world’s 10 largest banks told him crypto is now the bank’s “number one priority” and an “existential” issue.
- At Davos, Armstrong highlighted tokenization of assets and stablecoins as major themes, arguing they could broaden access to investments for billions while threatening to bypass traditional banks.
- He described the Trump administration as the most crypto-forward government globally, backing efforts like the CLARITY Act, and predicted that AI agents will increasingly use stablecoins for payments outside conventional banking rails.
Top Stories
