Tangem Says Two-Thirds of Crypto Users See Self-Custody as Important
Summary
- The report said 66% of cryptocurrency users view self-custody as important, but actual cold wallet adoption stood at just 15%.
- Tangem said the spread of self-custody was reflected in its business, with revenue reaching about $60 million last year, up more than 100% from a year earlier, while monthly active users (MAU) increased 50%.
- The report said most cold wallet users were actively managing assets through buying and selling, stablecoin management and interactions with on-chain apps, challenging the view that such wallets are simply tools for long-term storage.
Forecast Trend Report by Period
Two out of three cryptocurrency users see self-custody as important, according to a new report, underscoring how hardware wallets and other cold-storage tools are evolving beyond simple safekeeping into gateways to the on-chain economy.
Swiss hardware wallet maker Tangem on July 1 released a report titled "From Custody to Participation: The Rise of Active Self-Custody." The study, commissioned from consumer research and strategic insights firm Protocol Theory, analyzed self-custody usage based on a survey of about 3,200 US crypto users age 18 and older.
The report found that self-custody is expanding beyond crypto storage into a broader tool for managing, using and spending digital assets. Users retain control of their private keys while using wallets to manage assets and payments and interact with on-chain applications including decentralized finance.
Tangem said the trend is also showing up in its own business. The company generated about $60 million in revenue last year, more than double from a year earlier, while monthly active users increased 50% over the same period. The company said demand is rising from users who want to do more than store crypto and instead manage, deploy and use it directly.
The report also pushed back on the view that hardware wallets are mainly for long-term storage. Only 9% of cold wallet users described themselves as "passive holders," compared with 25% of users of centralized exchanges, or CEXs.
Cold wallet usage is also becoming more diverse. Some 77% of cold wallet users said they buy, sell or hold crypto directly through their wallets. Another 46% said they actively manage stablecoins, while 43% manage assets across multiple wallets and blockchains. About 41% said they regularly use crypto for payments, and 30% said they use wallets connected to Web3 apps.
The survey found a gap between perceptions of self-custody and actual cold wallet adoption. While 66% of crypto users said self-custody is important, only 15% said they use cold wallets. And although 46% said they were concerned about hacks at major exchanges, 88% still stored crypto on centralized exchanges.
The biggest obstacle to cold wallet adoption was that users did not feel they needed one, cited by 32% of respondents. Another key factor was the perception that cold wallets are only necessary for large holders or long-term investors. Cost was cited by 17%, while 19% pointed to complexity.
"Demand itself is not the barrier," the report said. It added that education and firsthand experience with self-custody will be key to broader adoption.
