The economic crisis has led to a boom in the cryptocastodial services and wallets market

The growth of Bitcoin and the worsening situation in the global economy have caused increased interest from institutional andindividual investors to the solutions of cryptocurrency storage service providers. The comments of industry participants are given by CoinDesk.

Startup Unchained Capital reports volume growth2.4 times transferred in cryptocurrency funds to the vault in January-March relative to the fourth quarter of 2019. During this time, several dozens of institutions decided to use the service, which serve the interests of hundreds of wealthy clients.

The company is finishing work on updatinga wallet that allows you to sort the data of unspent transaction outputs (UTXO), thereby reducing the amount of information about yourself to an external recipient even when using a public blockchain.

Project Advisor Christopher Allen noted that inlately, customers have preferred solutions where, in one form or another, they store private keys. At the same time, he does not see a clear terminology that distinguishes between the concepts of "wallet" and "custodian."

“Custodian requires keys that are under your control. But this is a dependency if a service is able to unilaterally block recovery ”Allen said.

Unchained Capital Advisor Considers Decisionsimplification and standardization of multi-signatures can become this dilemma, which will allow the investor to have flexibility in choosing various approaches and implementations and not concentrate on one solution.

The Vaults solution developed by the company distributes control over the cryptocurrency wallet among various people, which may become relevant for corporations and wealthy families.

Growing demand for cryptocurrency storage servicescan be seen among private investors. Compared to serving major players, this market segment is less marginal, but growing at a comparable rate. Similar observations were shared by Eric Vorhes, CEO of ShapeShift cryptocurrency platform.

Recently, the company announced the purchase of IsraeliPortis startup, which develops the eponymous non-custodian wallet for storing digital assets. Explaining the reasons for the purchase, Eric Vorges then said that this would allow to unify the wallet with ShapeShift users.

Extends the functionality of walletsand the manufacturer of their hardware options Ledger, the demand for which has also grown. Startup CEO Pascal Gauthier promised that users will be able to do “all the difficult things with a coin” directly through the Ledger Live app.

“We see an increase in the number of downloads of Ledger Live. Currently, our main income comes from the sale of hardware wallets, but the business model will evolve towards an increase in the share of revenue from additional services ”- Gauthier shared his plans.

Both Ledger and Unchained Capital are trying to understandin what direction is the cryptocurrency industry moving in order to build the right strategy and provide profitability for investors. So, according to Gauthier, Ledger refrained from acquiring startups, despite the availability of sufficient free funds for expansion.

Unchained Capital is currently relying onto flows from subscriptions of a small number of the largest customers to Vaults services, as well as from loans using open source wallets. Shapeshift revenue is generated through referral links in the application and other services.

They rely on the model of subscriptions in the startup Casa, whose CEO Nick Neumann noted that since the beginning of March the company's customer base has increased by half.

Recall recently the Swiss Market Associationof capital and technology has published standards for the storage and management of digital assets, aimed at clarifying the differences from the storage of traditional assets and establishing recommendations for custodians.